Secure your future with a pension plan
The pensions landscape is changing. There has never been more uncertainty for pension savers, and a greater need for each individual to look after their own pension plan and their general retirement planning.
The first step is to calculate how much you want to live on in retirement. Any good pension plan is based on a clear savings objective, that will guarantee you a certain level of buying power and pensions income. With the Principle First Pension Calculator you can enter your desired annual income in retirement, and the Pension Planner will show how much you need to pay into your pension plan right now, on a monthly basis, to achieve that goal.
You can also use our Risk Profiler to establish which pension savers category matches you, and view our Principle First OnePlan Portfolios, which can be viewed in the ‘Our Funds’ section of the Pension Planner Calculator. These offer pre-designed funds investments that match your desired level of risk.
Alternatively if you would like some expert advice to help build your pension plan please call us on 0800 678 5929 or get pension advice here
I will get the basic state pension. Why should I consider a personal pension plan?
On the one hand, the government is conducting an ongoing review of public sector pension plans, private pension schemes, and company pension schemes, the sole objective of which is to cut costs in the longer term.
The basic state pension is also being reviewed, and while the general objective in this area is to improve the benefits from the basic state pension, this is happening from a very low base. Since 1979, the basic state pension has been eroded by inflation, so that its real buying power has been gradually falling for those pension savers making National Insurance Contributions. The basic state pension for individual pension savers is now just £97.65 per week - the lowest state pension in the EU.
The news is little better for private sector pensions. Many private sector companies are struggling with major deficits in their company pension schemes, which have almost crippled them financially. Those company pension schemes which are now being restructured to cut costs.
The result is that the pension plans of many workers have been depleted on two fronts, in real terms. They have been reduced on both the state pension side and in their private pension schemes, company pension schemes, or public sector pensions.
In public sector pensions and company pension schemes in particular, the traditional and generous final salary (or defined benefit) pension schemes, which guaranteed a certain minimum income upon retirement, are now largely closed. The common pensions model for the future will be the defined contribution pensions schemes, which carry no guarantee for pension savers.
Secure your future – ask us for pension advice on your pension plan now
In future, the risk of investment for retirement will be shifted away from the state and employers, and on to the shoulders of the individual worker. In this situation, the need to take financial advice, and make our own pension provision, is clear.
The medium-term development of the basic state pension and of company pension schemes is shrouded in uncertainty. Only a personal or private pension scheme can give you control of your future – and only good financial advice can give you control of where your pension savings are invested, and the option to switch and reinvest, in order to keep your money working hard for you.
Plan ahead for peace of mind in times of uncertainty! We can advise you on your pension plan. Call 0800 678 5929 or submit a pension enquiry now.
