• Pensions

    Pensions+

    Whether you're saving for retirement or you are facing decisions at retirement, we can help

    View more
  • Savings Planning

    Savings+Planning

    Saving for the future is important and we can help you select the right product to achieve your goals

    View more
  • Mortgage Advice

    Mortgage+Advice

    We are specialists in arranging mortgages for First Time Buyers, people moving home, 'Buy to Let' mortgages and remortgages.

    View more
  • Investment Advice

    Investment+Advice

    Make the most of your money and don't leave it languishing in Building Society accounts

    View more
  • Equity Release

    Equity+Release

    Allows you to access cash tied up in your home - speak to one of our qualified advisers

    View more
  • Protect Insure

    Protect+Insure

    We can shop around for the lowest cost life cover, income protection and critical illness cover

    View more
 

Retirement reality 'kicks in at 48' when people finally wake up to needing to save more

Britons spend a large part of their working career unaware of how much they need to save for retirement - finding that reality hits when they turn 48.
 

While retirement seems a long way off for younger workers, pension savers get a wake-up call as they approach 50, when they begin to understand how much they really need if they want a comfortable retirement, a study by insurer NFU Mutual says.

Unfortunately, this means they have missed out on decades of investment growth that could have made a comfortable retirement a lot easier to achieve.

The majority of savers who are unfamiliar with pensions will underestimate the amount they need to save to achieve their desired income for later life, and not realising it until 48 means many could be leaving it too late to do reach their targets.

But Steve Meredith, of NFU Mutual, said it would still leave a decent amount of time to focus efforts on retirement saving so they aren't to badly affected even if they don't hit their targets.

He said: 'People might see these findings and worry or, worse still, bury their head in the sand about their own retirement planning.

'Whether you're 18, 48, or 68 it's absolutely never too early or too late to start making plans for later life.

'Any provision, no matter when made, will give you a bigger range of choices.'

 

More so than ever following the introduction of automatic enrolment, younger people are being asked to engage with pensions.

And while getting people saving in the first place is one challenge, getting them to save enough is another one entirely.

 

By 2018, the minimum total contributions from employer and employee into auto-enrolment pension schemes will be 8 per cent, but industry experts predict people need to save double that in order to get the income they want in retirement.

There are also moves being made to ensure that when they reach retirement, workers will get a decent return for their savings.

The Government is currently consulting on plans for 'defined ambition' pensions that will give workers some form of guarantee about what they'll get in retirement, rather than exposing them wholly to the volatility of annuity and drawdown rates.

So with improvements in the industry helping people get better value from their pensions, the main challenge is on people to save as much as they can.

Mr Meredith said: 'The sooner people stat saving, the more choice they'll have when the time comes to slow down or stop working entirely.'

Source:  thisismoney.co.uk

Sam: 4th Dec 2013 16:56:00

 

Latest News

Budget 2017: Stamp Duty Changes
Budget 2017: Stamp Duty Changes

Read More >>

Shift from annuities to drawdown continues
Shift from annuities to drawdown continues

Read More >>

Base rate rise could cost variable borrowers £83m
Base rate rise could cost variable borrowers £83m

Read More >>

It costs £10,830 a year to be a pensioner
It costs £10,830 a year to be a pensioner

Read More >>

Buy-to-let market pauses for breath amid new rules
Buy-to-let market pauses for breath amid new rules

Read More >>

See all News...
  • Pensions

    Pensions+

    Whether you're saving for retirement or you are facing decisions at retirement, we can help

    View more
  • Savings Planning

    Savings+Planning

    Saving for the future is important and we can help you select the right product to achieve your goals

    View more
  • Mortgage Advice

    Mortgage+Advice

    We are specialists in arranging mortgages for First Time Buyers, people moving home, 'Buy to Let' mortgages and remortgages.

    View more
  • Investment Advice

    Investment+Advice

    Make the most of your money and don't leave it languishing in Building Society accounts

    View more
  • Equity Release

    Equity+Release

    Allows you to access cash tied up in your home - speak to one of our qualified advisers

    View more
  • Protect Insure

    Protect+Insure

    We can shop around for the lowest cost life cover, income protection and critical illness cover

    View more