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Daily Insurance Industry News
Thursday 24th of May 2018
October 31, 2011

Retirement plans in tatters for one in five

by Gill Montia

Story link: Retirement plans in tatters for one in five

The UK is probably headed towards a perfect retirement storm, according to Standard Life.

New research from the life and pensions provider suggests that one in five 45 to 65-year-olds who have made financial provision for retirement believe their plans are inadequate, due to the financial crisis.

Of those still working, 6% don’t expect to be able to retire – ever.

Worse still, 37% of this age group have no financial plans in place for retirement, the study suggests, although 72% of 45 to 65-year-olds still in the workplace are hoping to retire between 61 and 70.

With the head-in-the-sand approach to income in retirement a non-starter, Standard Life has published a list of tips for those brave enough to do the sums, as follows:

1. Don’t panic!
2. Seek professional financial advice.
3. Continually review your financial goals.
4. If you don’t have one, make a plan.
5. Ask for a state pension forecast and calculate your state pension retirement age.
6. Review your investments.
7. Consider deferring taking the state pension at your default retirement age – for every year you defer taking benefits you can increase the pension by 10.4%.
8. If you have moved jobs, ensure you have kept your old employer up to date with address changes, so you can claim any workplace pension when you retire.
9. If you can, increase your savings.
10. If you’re a higher rate tax payer, ensure you claim the tax-relief. Standard Life estimates 300,000 people are not claiming this currently.

 

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