Things have changed considerably in the more than one hundred years since the 1st of January 1909, when nearly half a million people over the age of 70, who had worked all their lives, passed a means test and became eligible for the first ever national old age pension of five shillings a week.
Today’s state pension of around £160 a week is paid out to approximately 13 million men and women, over 2 million of whom survive on that amount alone. This costs the UK government over £100bn a year, an amount which is set to double and double again by the midway point of this century.
The sums above may seem huge but, according to some measures, we are only 22nd out of the 34 largest economies in state and workplace provision of pensions. Given this comparatively miserable and miserly position, the ever-increasing cost of living, and the pressure that there is likely to be on the state pension in the future it is more important than ever to look at your own pension planning.
At In2 Planning we know the sheer amount of information on pensions out there can be bewildering and confusing. With new rules introduced by successive governments on how and when you can access your pension, how much you can drawdown, and the limits on how much you can pay into your pension, just keeping track of this constantly changing pension landscape is almost impossible.
Also, of course, planning for your financial needs in retirement needn’t just be about your pension but can also include investing in Property, ISAs, Unit Trusts, and other alternative investments.
Just how can you be expected to stay up to date and plan for the day when you give up work?
Well, over the next few months, on this website and in our monthly bulletins, we will be exploring pensions and other retirement planning investments in more detail. But in the meantime, speak to us about how our advisers, using a suite of tools, can begin to help you plan for your retirement.