A former pensions minister described the increase in the number of older workers as a ‘social revolution’. The figures can be partly attributed to a rise in the state pension age from 60 for women. It has been going up since 2010 and will hit 65 by 2018, bringing it in line with that of men. For both sexes, it will rise to 66 by 2020 and 67 by 2028. Legislation was introduced five years ago banning employers from forcing staff to retire at 65 and the demise of generous final-salary pension schemes means most people must work for longer.
The concern that private pensions are unable to sustain people if they retire earlier is also seen as a driving factor, as people have not made ample provision and are, therefore, rightfully worried that they will be in penury if they retire too soon.
On another note, it appears that savers are raiding their pensions in increasing numbers to assist their grandchildren onto the housing ladder. It has been reported that over 55’s have taken out over £28 million a day in the last 3 months. The concern with this is that an early raid can leave a deficit when the pot needs to last at least 20 years after age 55.
If any of the above strikes a note with you, given that you will be relying on your pension for long term provision, you should seek advice from a reputable independent financial adviser before taking any action. An hour’s discussion could significantly alter your future lifestyle for the better – fill in a contact form here to get in touch.
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.
To help tax authorities in various countries hunt out those individuals and companies trying to hide assets, the UK has recently signed a disclosure of asset agreement with Spain, Germany, France and Italy. What does this mean? It means that the UK, in partnership with France, Germany, Spain and Italy, have passed regulations that will lead to the automatic sharing of information about the true owners of companies, complex shell companies and overseas trusts.
The days of the “job for life” with a single employer are, for most of us, long-gone and we are now far more likely to have multiple jobs paying into a number of different pension schemes. This means tracing old pensions when you retire – whether defined benefit, defined contribution or private stake holder. In order to get an accurate and full idea of your pension wealth it is essential that you begin finding lost pensions to factor every single one into a total valuation.