A recent study1 has found that a significant proportion of over-55s struggle to understand a range of key terms and rules relating to pensions. One essential piece of information to know is your State Pension Age (SPA), which is determined by your date of birth.
THE COST OF A COMFORTABLE RETIREMENT
According to recent research, people who wish to retire at the age of 65 with pension income (including a full State Pension) equivalent to the average UK annual salary of about £28,000, now need to accumulate a pension pot of nearly £450,000 in order to fund their retirement until they are 100 years old. The Offi ce for National Statistics says increasing numbers will attain this age in the coming decades.
EDUCATING THE NEXT GENERATION OF INVESTORS
Talking about money with your children can be a difficult task for many parents. However, while such discussions may be uncomfortable, this taboo mentality can cause problems when it comes to transferring wealth from one generation to the next. Indeed, the only real way to ensure children are ready to take on financial responsibility is through education and communication.
PLANNING FOR A NEW ARRIVAL
Preparing for the patter of tiny feet is an exciting, if somewhat daunting, time. And such a momentous event will clearly have major implications for household finances. So, while financial planning may not feature at the top of many prospective parents’ ‘to do’ lists, it is a key action that will need to be tackled.
INCOME FLEXIBILITY IN DRAWDOWN
Did you know that over-55s in drawdown can vary the amount of income they receive? If you didn’t realise that was a possibility, you’re certainly not alone, as a recent YouGov survey commissioned by Zurich3 discovered.
TIME AND MONEY – STRIKING THE RIGHT BALANCE
It’s difficult to break the habits of a lifetime, as recent data from HMRC highlights. It seems some pensioners are continuing to save for their future, with the average value of an ISA held by someone aged over 65 now totalling £47,000, an increase of £4,500 on the previous year.
STAY SAFE DURING BREXIT
It’s worth reminding yourself of the Financial Conduct Authority’s (FCA) advice regarding staying safe from scams taking advantage of Brexit.