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 Last week saw the release of the
shocking UK Pensions Commission's report highlighting the
massive shortfall and harsh prospects people face in old
age.
This major report
painted a bleak picture of the future for people who have not
made adequate provisions for their retirement.
Ultimately the only person who
will be able to provide for you in retirement is
YOU!
- Pensioner's income is set to fall by an
average of 30% over the next 30 years unless people save
more now.
- Some reports
suggest up to 40% of people are not saving enough for
retirement.
- Unless
people significantly increase the amount saved for
retirement, the average age of retirement would have to rise
from 62 to almost 70.
- It is estimated
that by 2050, the number of people over 60 in Europe will
have doubled to 40% of the total population.
- A male
professional aged 65 retiring now needs a pension pot 19%
bigger than five years ago just to offset the longer life
expectancy built into annuity (income for life) rates.
- Don't rely on
the state. As an expatriate, you may not even qualify, and
even if you do, can you really survive on such a small
amount?
- A major
shift of responsibility is occurring - from the state and
employers to individuals.
The Solution
You need to re-evaluate the provisions you
have in place and decide what quality of life you want to look
forward to in retirement. Don't put off starting a pension or
increasing the amount you save. Due to the way compound
interest works, the more you pay in now, the less it will cost
you.
As a rule of thumb the absolute minimum
you should be saving would be half your age as a percentage of
your income.
So at 34, that
would mean at least 17% of your income should be saved toward
your retirement. Every month that goes by means there is one
less pay-day until your retirement!
Read
more online
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[ A deVere & Partners advisor will be happy to
complete a full financial analysis of your personal financial
situation, discuss your retirement provisions & goals
including how much you are currently on target to save,
company scheme provisions, frozen pensions, and help you
decide how much you will need for the retirement lifestyle
that you would like to achieve ]
Some of the articles we found of interest
this month include: -
1. Pension
gap means 'stark choices'.
2. Companies
breaking pensions pact
3. Pensions:
How much trouble are we in?
4. How
bad is the UK's pension
crisis?
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