Last week, the FTAdviser highlighted the worrying fact that most of the UK workers are not seeking out.
Data from the Institute and Faculty of Actuaries highlighted that less than 10% of workers who are on the average UK salary have paid for financial advice as part of theirplanning.
As part of itsReadiness Report, the Institute surveyed 1,380 people in the UK. It found that 10% of people earning £30,000 have paid for financial advice. The average UK salary in October 2017 was valued at £26,520. Which means that, at that level, the data showed fewer than 10% had sought out advice from a professional IFA to help them with their retirement planning.
What is more worrisome for the industry is that , while 10% of those surveyed in the £30,000 income bracket had paid for financial advice for retirement, the number declined again for those in the next income bracket up. Not reaching 10% again until the cohort who earn over £60,000.
This means that a large percentage of middle income earners in the UK are not planning for the future in any significant way.
This was born out by the other results from the survey, which showed that one in five UK adults had no savings or plans to save for retirement. And less than half had actually started saving or preparing for retirement.
It also showed a significant gap in the level of retirement planning between men and women in the level of preparedness for retirement. Just less than 50% of men in the UK are preparing for the risk of running out of money in retirement, while less than 40% of women have prepared for retirement.
The results of the report are worrying, and bear out the recent trend that fewer and fewer people are providing for retirement, with most people doing too little too late.
Our view has always been that putting away even a small sum, as soon as you can, will make a big difference to the lifestyle you may enjoy when you retire.
There is no guarantee that the State alone can provide for all your needs in the future, which means that aof some form is a golden rule to acquire. Additionally, most benefit from tax breaks and it also possible now to contribute to your pension, if you don’t work.
Changes in Legislation MakeHighly Advisable
Pensions legislation has changed dramatically in the last two years. Today there are a range of tax efficient ways of providing for a comfortable retirement. Not least, the possibility of transferring existing Final Salary Pensions to a much more profitable Defined ContributionScheme.
The area, though, is complex, so choosing the right vehicle requires a detailed understanding of your personal circumstances, tax position, employment status and more.
Planning for the Inevitable Future
Most of us, at some point, wish to retire. Having the rightis about knowing how to maximise the income (& Capital) from your pension arrangements (and other assets). This will also take into consideration your personal circumstances, tax implications including inheritance tax, your beneficiaries, flexibility and of course, control.
AtLtd, we can provide detailed advice following a thorough financial review.
Some of the main contracts available for drawing your pension benefits are:
- Phased retirement
- Capped and Flexible Drawdown (Pension Fund Withdrawal)
Your pension is a long term Contact us to get the right support that will build your retirement plan, and make your future secure.. Rather than wait and hope for the best, we always advise all of our clients, no matter the what income bracket they fall into, to plan, not to hope.