New proposals for a general pension income of £140 per week for all pensioners will still leave a third of UK pensioners below the poverty line as defined by the EU. Planning a personal pension to ensure adequate pension income in retirement has never been more essential. Read More
The public sector should pay more contributions to pension schemes, work longer, and get less back, according to new recommendations to government.
More retired people are deriving income from continuing work, and have not achieved the pension income for the retirement of leisure they planned, according to new data released this week by the ONS. Many pensioner couples now take a quarter of their income from earnings. Read More
Over 60% of those rich enough to retire tomorrow are ‘Nevertirees’ who plan never to stop working – but financial planning remains at the core of their future thinking, says Barclays Wealth. Read More
Demand for children’s pension plans has jumped by 62% in the last year, as parents see value in a tax-efficient, long-term savings option for their child’s future. In the shorter term, parents are also giving their child peace of mind, while others of the coming generation may struggle to arrange their retirement planning.
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Each year of pension income now requires two years of work, according to Aviva. However, as we may in future be living longer and working for less time, we may have to fund a retirement that is as long as our working life.
A third of couples over the age of 40 know nothing of their partner’s retirement pension plan, and general finances. As a result, there is no coherent financial planning in place, with many ‘living in hope’ that they will have sufficient income in retirement.
Many expect their pensions income to fund global travel and a comfortable lifestyle, but in reality their pensions income could be just £40 a week, says Aviva.
Social research charity the Joseph Rowntree Foundation has published minimum income figures needed for an acceptable standard of living in the UK. The figures in relation to pensions income indicate that state pensions are inadequate for a decent living standard.
