A recent survey conducted by Schroders suggests that Brits are failing to make sufficient provision for retirement. There is a mismatch between the income people believe they need in retirement and the actual cost of living, which means those who are not yet retired expect living expenses to take up just 34 per cent of their retirement income, whereas in actuality they account for 49 per cent.
It can be a consolidation conundrum to know when it makes sense to combine different pension pots, and when you are better off keeping separate accounts. The days of a job — and a pension — for life are long gone. People in the UK now have an average of 11 jobs during their working lives, which can mean a similar number of separate company pension plans, alongside any private savings. This might include personal pensions, stakeholder pensions or SIPPs (self-invested personal pensions).
As a qualified chartered accountant, Leah* is all too aware how tax can eat into the value of people’s savings and investments. When it comes to her own money, she wants to make sure it is invested as tax-efficiently as possible, and this was one of the reasons she opened a SIPP with EQi.
You might enjoy the benefit of being in charge of your own work, but you can end up paying for this freedom in other ways. All companies that employ people now have a responsibility to provide pensions to their employees, but it’s just one of the many things a self-employed person will have to take care of themselves. So if you are self-employed, you risk being left behind when it comes to retirement saving, as well as other long-term benefits - unless you take a few simple steps.
Saving for retirement can sometimes seem a daunting task. This situation isn’t helped by the fact that many of us today have a hotch-potch of different pension plans. This is likely to include various company pensions, private pensions and investments, as well as the state pension. It is estimated that the average person has around 11 different jobs throughout their career* and some will have significantly more. Thanks to the Government’s auto-enrolment programme, each time we switch jobs we ar
Retirement is an increasingly expensive business. Life expectancy and the cost of living for retirees are rising. So what you are expecting to be enough to keep you going when your working days are done is unfortunately not what you are likely to get.
Investing for a comfortable retirement is an ongoing process, not a one-off exercise. You will need to check you are on course to achieve the required level of income when you give up work as interest rates and returns from different assets may change over time.
For many people, the ability to achieve a regular income from investments is important. This may be particularly relevant for people who are retired and no longer have a monthly pay packet to rely on and are looking to achieve financial freedom, while other people require their investment to pay out regularly to cover a regular commitment such as school or university fees.
For younger people who want to save for their futures, there is now a new kid on the block. The Lifetime ISA (LISA), has been available since April 2017 and comes with the alluring promise of a 25 per cent bonus on top of your annual savings. But how do eligible investors choose between this product and a pension.