Due to the consequences of the Covid pandemic, the energy crisis and a range of other factors, the UK and the wider global economy has seen inflation increase the cost of living substantially in a relatively short amount of time. This has resulted in much of the population having to cut back on their spending and reconsider their priorities when it comes to everyday purchases. This has meant that many have been preoccupied with immediate concerns that have arisen following the start of the cost of living crisis and have failed to consider how it might impact their retirement.
Research shows that for a single person living alone, the cost of a basic retirement has risen by 18%, now estimated at around £12,800 annually as opposed to the £10,900 needed before the cost increases.
The cost of energy and fuel makes up a large part of this increase, meaning that those who are hoping to retire in the coming months will probably need to reconsider their retirement plans or be forced to compromise on the quality of life they were hoping to maintain.
The government’s commitment to the pension triple lock means that there will be some increased support for pensioners, as the state pension is set to rise by 10.1% this year. However, this does not compensate for the 18% increase in the cost of retiring and there are also fears that this policy is ‘unsustainable’, as it will cost the government over £9 billion next year alone.
How can Blacktower help?
If you are concerned about the increase in the cost of retirement and want to ensure that your retirement plans are still sufficient, we can help.
We can provide a holistic review of your finances and delineate the best way to achieve your financial goals, helping you feel at ease knowing that you’re on the right track to your dream retirement.
If you would like to arrange a complimentary, no-obligation consultation with one of our advisers, click the link below to get in touch.
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This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice form a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
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Readers may remember the pension freedoms announced by George Osborne in 2014. These became effective on April the 6th this year. The fanfare accompanying the announcement and indeed subsequently is often set against the backdrop of pensioners sat in Daimlers or on Yachts having drawn all their money out and lavished it on some frivolous purchase.