With recent research by Sun Life suggesting that nearly a third of over-50s are worried they won’t have enough to live on when they retire, pension experts are calling for people to prioritise their pensions now and understand what their obligations are.
Partner and Actuary at Quantum Advisory, Stuart Price, is using this coming Pension Awareness Day (15 SEPT) to highlight the lack of knowledge when it comes to retiring. Stuart says: “Many people just assume they reach retirement age, leave their job and begin receiving a regular income to fund their new life of leisure. Wrong!
“Yes, people are entitled to the State Pension, but it is very likely that in the future, State Pension Age will increase further and we might even see the amount of State Pension fall as the Government looks to rebalance its books post-COVID. The State Pension should certainly not be your only source of funding in retirement.
“Even those paying the minimum auto-enrolment contributions into pensions – currently 5% for employees and 3% for employers – will not build up a huge retirement fund and individuals need to get into the habit of saving as much as they can, from as early as they can.
“I completely understand that pensions are confusing, and younger people can struggle to prioritise something that seems so far away. There will always be something more imminent that needs financial attention, and that’s why Pension Awareness Day is so important. Anyone confused about retirement or their pension options, can freely ask for help and support. Getting to know your pension early will ensure you are in a much stronger position in later years and the retirement reality won’t come as a shock.”
For details about pensions and employee benefits, visit: www.quantumadvisory.co.uk.
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