Finances AbroadMaking the complicated simple!

What about the State Pension?

According to new figures from financial services company True Potential, savers in the UK have added an average of £2,671.60 towards their pension pots of the last 12 months.

That may sound like a substantial amount, but the truth is that over twenty years of retirement saving, that would only provide £6,011 a year to live on. The average desired income in retirement is more like £23,500 a year, which just shows how massive the shortfall is.

Relying on the State Pension to make up the shortfall is a dangerous exercise.

The State Pension currently stands at a measly £113.10 per week. If you retire after 6th April 2016, this will rise to £148.40 (of course, this might be adjusted before then), but to get the full amount, don’t forget that you will have to have completed thirty-five years of full National Insurance contributions.

Whilst the current figure could bolster your retirement with an extra £5,881.20 a year, there are growing concerns that the State Pension may not even exist in the future as it is proving to be unsustainable.

Do not rely on the government to fill any gaps in your retirement planning. Governments change, and with it, the provision of state pensions change too.

Speak to an advisor today, and take charge of your own future plans.

[Are you saving enough?]

[The Gaps] 

Future Planning, Pensions, Retirement Planning, Tax-Free Growth, UK Pensions

By admin

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