Retirement

Do you know the value of your pension savings?

With people living longer than ever before, we all need to save more. But because there’s always something more urgent to pay or save for, it’s something that many of us rarely think about.

Getting the date right can help you reach your destination sooner

At some point you’ll say ‘goodbye’ to your co-workers, get into your car and drive towards the next phase of your life – retirement. But when will that be? The move to retirement is one of the most important decisions you’ll make, so it’s not surprising that determining the date is harder than you may ever expect.

What’s the right answer for you?

The first increase in minimum automatic enrolment (ae) workplace pension contributions came into effect on 6 April[1]. According to research from Scottish widows, however, one in five Britons (20%) – amounting to more than ten million people – say they’ll work until they’re physically unable to, while one in 20 (6%) – another three million people – say they expect to work until they die.

With auto-enrolment contributions set to rise again, South Tyneside-based Fairstone, one of the UK’s largest Chartered financial planning firms, reflects on the need for everyone to have a practical retirement plan in place.

The start of the new tax year sees the minimum contributions of workers in auto-enrolment pensions rise from 1% of their income to 3%. Employer contributions have also increased from 1% to 2%.

Steps you could take to increase your eventual income

Even if retirement isn’t far away, there are steps you could take to increase your eventual retirement income. This applies both to your state pension entitlement as well as to any personal or workplace pension pots.

We’ve provided some areas to consider that you may wish to discuss with us to help you to meet your retirement goals.

Make sure you have details for all your pension pots

Pensioners embracing the benefits of retirement and new-found time.

As with any new life stage, planning often helps a smooth transition from the old to the new. Preparing properly for anything new requires planning and commitment. Spending time on planning now will ensure you enjoy the retirement you’ve worked hard to achieve.

Pension freedoms bring optimism and adventure to retirement

Will I ever slow down? Do I have the right plans in place?

Not having enough money for retirement is the biggest concern

Average life expectancy has generally been increasing, and for the ‘sandwich’ generation, saving for their retirement is clearly a big concern, and with plans to contribute financially to support their children and parents, it’s perhaps no wonder.

Helping you realise your retirement vision

We’ve now entered a new age of retirement planning with the introduction of pension freedoms. Your retirement is likely to be the most important time in your life you’ll ever plan for – you could be retired for 20 years or more.

74% of those aged 16-24 have no retirement plan in place

A wide-ranging independent Ipsos MORI survey published today by Fairstone, one of the UK’s largest chartered financial planning company, provides insight into how younger people approach their personal finances.