According to a new report, workers should be saving at least 12% of their annual wage into a pension.
The report, commissioned by the Pensions and Lifetime Savings Association (PLSA) claims that once final salary pensions are gone, just 3% of savers in modern pension schemes will be able to afford what is considered a comfortable retirement. 12% is given as the minimum that workers should be saving, with employers making up half of that.
The PLSA report states:
“The vast majority of savers do not understand retirement savings, do not know what sort of income they should aim for in retirement, and do not know how to achieve it.
The state pension, private pension savings and property assets are the most significant sources of wealth that most people possess.
Future generations of retirees are, however, much less likely to have sufficient assets to generate an adequate retirement income”.
Why You May Struggle
Reasons given in the report as to why future generations of retirees are likely struggle include the decline of final salary schemes, low contributions into defined contribution pots, less people owning their own homes, increased life expectancy, and higher social care and housing costs. You can read more on the PLSA report on the This Is Money website.
If you are worried about the state of your retirement savings, please get in touch. Our experienced pensions advisers will be happy to help.
The chancellor gave her Autumn budget - this is a summary of all the important changes she announced.
Unfortunately, today’s online scams are becoming more convincing than ever, by understanding the latest tactics and knowing what to do if you’re targeted, you can help keep your money and personal details safe.
Finding the right financial adviser can feel overwhelming, but having professional guidance is one of the best ways to make confident decisions about your money.
Whether you’re planning for retirement, managing investments, or protecting your family with insurance, the knowledge of a local adviser can help you make the most of your finances.
Taking the first step towards buying a home in Dronfield is an exciting life event, but it can also feel daunting without the right guidance. Understanding the stages of the mortgage and home-buying journey will help you move forward with confidence.
This article sets out the key steps first time buyers in Dronfield will go through, and explains how working with a local mortgage advisor, like Charles James, can make the whole process much smoother.
April has brought significant turbulence to global stock markets, with sharp declines in value shaking both investors and markets alike.
In this post, we’ll take a closer look at the events causing this market instability and provide insights into how you can successfully manage your investments during times of heightened volatility.
An annuity is a financial product that allows you to convert your pension savings into a guaranteed, fixed income for the rest of your life - often referred to as a secure income.
Choosing an annuity is a significant decision, as it is usually irreversible. That’s why it’s essential to fully understand how annuities work, the different types available, and the features they offer before making a commitment…
While inheriting a property may come with sentimental value, it also brings important financial and legal considerations. Understanding your options will help you make the right decision for your circumstances.
To guide you through the process, we’ve outlined key considerations when inheriting a property, including your choices, tax implications, and legal steps.
For much of 2024, interest rates were above 5% and the markets have experienced ups and downs which might have made you tempted to prioritise cash savings, seeing them as a safer option. However, for long-term savings goals, relying on cash savings alone may not yield the returns you need. This is where the strategy of regularly investing smaller amounts can be highly beneficial.
If your plans for the future have felt stalled recently, now might be the ideal time to revisit and reignite them…
Your pension and ISA allowances remain two of the most effective ways to improve tax efficiency and protect your savings.
Here’s a simple, practical breakdown of how they work and how to make the most of them