The death of retirement – what retirement might look like in the future

Back when the state pension was first introduce in 1908, the average life expectancy for men was 54 and for women 61. Given that the state pension was only available at the time to people over the age of 70 that meant that many didn’t live long enough to receive it. However, now times have changed significantly – we are living longer. A lot longer. Girls born in 2016 have a life expectancy of 93 and boys 90. The potential requirement to fund pensioners for 30+ years has meant the state pension is on the downward slope. So, relying on the state pension to provide 100% support during the golden years is just not an option now. Why don’t we have enough to cover retirement? There are a number of reasons why so many people don’t have enough cash set aside for retirement. The increasing costs of owning or renting property are eating into our budgets and leaving little left for retirement savings Real pay levels have been stagnant for some time so many incomes are just not keeping up


How does the state pension work and what is the ‘triple lock’?

The state pension has changed radically since it was first introduced in 1909. It has had to – a century ago, just 500,000 people over the age of 70 were in receipt of the state pension which was, at the time, five shillings (25p) a week and was paid in full to individuals aged 70 or more with an annual income of £21 a year or less reducing to nothing for those making more than £31 a year. Today, there are an estimated 12 million people in the UK of pension age or above. That represents 32 per cent of the working population. Government figures estimate that by 2050 that number will have risen to 17 million people or 36 per cent of the working population. That means that the state pension is becoming progressively  less affordable and successive governments have been forced to make changes. How has the state pension changed? The entitlements for the state pension changed substantially in April 2016 for men who were born on or after April 6, 1951 and women born on or after April 6

How to protect your pension if you are a stay at home parent

Statistically, the parent who stays at home and looks after the children – mum or dad – is the least likely to save for retirement. So, if you’re about to make that leap you need to consider your retirement spending now, as much as babygros and saving for your child’s university fees. Figures from 2015 show that there are now around 2 million stay at home mums in the UK, down from 3 million in 1993. The number of men who now stay at home with the kids has risen although still not to equal numbers. There are now 111,000+ stay at home dads, as opposed to 235,000 in 1993. The shifts in these numbers show that more and more people are choosing (or having) to work but what happens if you don’t? Most UK workers will now find themselves part of a pension scheme but for those who stay at home there’s no such thing. So how can you ensure you have some pension provision if you’re a stay at home parent? The state pension Although the state pension is likely to be barely enough for

How much pension should I save for retirement?

While the sums that you can plough into a pension scheme will depend upon what you can afford to put aside each month, the main rule of thumb is that the longer you leave it to start, the more you will have to start saving. Recent surveys have shown the British consistently underestimate how much they need to put by to guarantee anything like a comfortable retirement and that they leave it far later to begin than they should. Get this wrong and there ll be little chance of putting anything exotic on your bucket list! So, what do you actually need to retire on and how much do you need to put aside to get there? Types of pension There are two main options when it comes to saving a pension while in work: defined contribution schemes and defined benefit schemes. Defined benefit schemes are better known as final salary pension schemes and are gradually being phased out as employers find that they can no longer afford to fund them. That’s because the benefit – the amount that you get ea

Why your pension could be at risk

By: Alex Hartley Apr 07, 2016 Why your pension could be at risk For many of us, there has been little positive economic news to shout about in recent months and the pensions issues that emerged in February of this year have given us even more cause for concern. It was reported widely in the news that thousands of people could find that they end up losing savings put aside for pensions as a result of the new auto enrolment schemes that have been introduced by the government over the past couple of years. What’s happened? Thanks to the Pensions Act 2008, every employer in the UK now has an obligation to make sure that certain staff are enrolled into a pension scheme, and contribute towards it  On the face of it this seems like a great idea. However, the industry regulator – the Pensions Regulator – has said that a number of these pension schemes, in particular the smaller ones, could end up collapsing, which would mean that anyone who had their savings in one would lose everythin