Placing a cost on retirement

How much income do you need for a comfortable retirement? New research has put a post-pandemic price on the answer. One traditional way to answer the question of how much income you will need in retirement is to fix the amount as a percentage of pay. For example, when final salary pension schemes were more…

Read More

Widening gender pension gap with a Covid-19 twist

Pensions gender gap grows

New research has highlighted a growing retirement income gap between men and women, which has been exacerbated by the pandemic.  According to the Office for National Statistics (ONS) life expectancy calculator, at age 55:  Men have a life expectancy of 84 years, with a 1 in 4 chance of surviving to 92. Women have a…

Read More

How much pension?? What is an adequate retirement income?

Planning your retirement income is not straightforward

A leading pension think tank has examined this question – but the findings aren’t straightforward. Over the years, there has been much focus on the tax treatment of pensions and ways to encourage greater saving for retirement. Arguably, there has been less attention paid to the question of how much income you will need once…

Read More

Timing retirement saving

Pension savings

Research from the Institute for Fiscal Studies (IFS) examines how pension contributions fit into life-cycle patterns.  Economists often seem to think in a way that is unique to their world. Many of their theories start with the assumption that people behave rationally, weighing up all the pros and cons before deciding what action to take. Impulse-buying doesn’t compute with these expected behaviours.  One interesting economic viewpoint that holds some…

Read More

Retirement in 2021… or beyond

A recent survey of people who have or plan to retire in 2021 provides interesting insights, whatever your intended retirement year. The average age of people planning to retire in 2021 is 60, according to a recently published survey by investment manager, Standard Life Aberdeen. That is six years before current state pension age, which…

Read More

Calling time on the pension triple lock?

The state pension triple lock may not survive much longer. The impact of Covid-19 on earnings could mean a change in the way that state pensions are increased in each year. If nothing is done, it could give pensioners a large income boost, but cost the government dearly. At present, the new (single tier) state…

Read More

Should you review your pension fund withdrawals?

The fall in world stock markets has cut the value of many pension pots. Which would you choose as investment performance, assuming a £10,000 investment that would be untouched for 10 years? A steady return of 5% a year throughout the period; or Two years of 20% annual losses followed by eight years of 12.39%…

Read More

National Living Wage set to outpace new state pension

The National Living Wage (NLW) rises by over 6% in April. The 6.2% increase to £8.72 an hour equates to £15,870 a year based on a 35-hour week. The substantial rise is not down to inflation – which ended 2019 at only 1.3% – but due to a policy of George Osborne’s. When he made the surprise…

Read More

Last call for 2016/17 on your annual pension allowance…

The clock is ticking on using up your pension annual allowance  The allowance effectively sets the maximum pension contributions from all sources (including your employer) on which you may be able to claim income tax relief. In recent times it has been the subject of much controversy because of the way the allowance is tapered from the…

Read More