The study, which was carried out by the Centre for Research in Social Policy (CRSP) at Loughborough University, used the Joseph Rowntree Foundation’s Minimum Income Standard to set some retirement income baseline needs based on a basket of goods and services including household bills, food and drink, transport, holidays and leisure, clothing and personal costs and helping others. The basket was then adapted in line with three separate standards of living for different income levels: minimum, moderate and comfortable.
The PLSA hopes that the Retirement Living Standards will become standardised across the retirement and pension planning industry and will be used by financial advisers to complement their expertise when engaging with clients. It has set an ambitious target: adoption of the Standards by nine in ten of all pension schemes with active savers by 2025.
Furthermore, the Money and Pensions Service is currently in discussions with the PLSA with a view to using the Retirement Living Standards as part of their Money Advice Service pension planning calculator.
A healthy-saving initiative
It is hoped that the Standards could assist the pensions industry by:
- Providing a robust set of standardised tools across schemes to aid communication, based on independent research
- Assisting schemes in inspiring savers to engage with their pension savings
- Providing pension savers with tangible information on retirement costs, to inspire confidence that they will meet their goals and objectives
Nigel Peaple, Director of Policy and Research at PLSA, commented in a press release, “The Retirement Living Standards will support better saver engagement. They distil robust, in-depth research with the public into an easy to understand basket of goods that helps people picture the future – and relatable figures that can provide a powerful and practical tool for encouraging engagement with saving.”
Pension planning for expats with Blacktower FM
Blacktower Financial Management is committed to giving its clients the tools, knowledge and discipline they need to achieve their retirement financial goals.
We do this by applying our expertise to assist savers so that they are able to fully participate in shaping their financial future. We aim to ensure our clients are able to confidently meet the costs of their retirement as well as any legacy goals they might have.
Saving for retirement and structuring your wealth, including any cross-border assets, is much easier when you understand the issues at play and are able to visualise what you are working towards. If you would like tried, tested and trusted bilingual financial advice and pension planning services from a wealth management firm of more than three decades experience, contact your local Blacktower office today.
* https://www.retirementlivingstandards.org.uk/ Accessed 18-10-19
** https://www.plsa.co.uk/Press-Centre/Press-Releases/Article/PLSA-launches-Retirement-Living-Standards Accessed 18-10-19
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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Statistics from the Office for National Statistics (ONS) have shown that a record number of savers are now members of workplace pension schemes.