With the average life span in the UK set to hit 89 which could mean that you could be spending 24 years in retirement with no employment.
Should people get real about their retirement planning?
As an Independent Financial Adviser I often asked the question: what income would you like when you come to retirement? The responses that I get vary immensely but are normally around £20,000 gross and many people have no idea of the level of lifetime savings require to generate this income. If we discount state benefits for one second to generate a £20,000 income you may be surprised to find out that you require savings of around £400,000 in today's terms.
· In a recent study from money marketing it was suggested that 8 out of 10 UK adults will have some form of pension shortfall when they come to take their retirement funds.
· It also stated that 6 out of 10 people in the UK have no retirement plan at all.
· The FSA recently stated that it is important the UK individuals to sit down with an Independent Financial Adviser at least once a year to review their financial affairs and to make sure that they are on track to retire on the incomes that they want.
As we have seen over recent times many people are more interested in spending money rather than saving it. This is very worrying due to the fact that over 65 populations the UK are due to treble in about 20 years time. We are starting to see how concerned the UK government getting over income in retirement due to the fact that it is planning to introduce compulsory pensions in 2016 but it is too late.
I would argue that if you do not wish to be reliant on means tested state benefits then you need to start planning now. The government even gives tax relief to people that wish to plan for retirement as people can get a maximum of 40% relief on contributions to pension. It even offers a tax-free savings allowance of £10,200 within individual savings accounts commonly known as ISA.
So if you want to know more please do not hesitate to contact me on 01473722766 not only will you get good quality advice but you will also be benefiting a local charity called Cancer Campaign in Suffolk as 10% of our turnover goes to this worthy cause
Please note the information provided in this article is for information purposes only and should you wish to act on any of these points raised in this article you should seek independent financial advice.
All financial advisers need to authorised by FSA and if you wish to check that I am, go to www.fsa.gov.uk/registered/home.do and my FSA number is 478224 Essential IFA Ltd is an appointed representative of The Whitechurch Network Ltd, which is authorised & regulated by the Financial Services Authority
Member since: 2nd January 2012
Essential IFA was setup in 2007 to provide expert, independent financial advice to individuals, offering a more personal touch than is provided by large financial institutions.