Expert’s top tips to ‘have enough in retirement’ amid market turmoil
Martin Lewis says 'more people' will be paying tax on savings
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Some Britons approaching retirement in their 40s and 50s may be struggling to keep up with rising costs, however it is important for them to remain focussed on long term goals. Pete Glancy at Scottish Widows spoke exclusively with Express.co.uk about how to make sure “you have enough for retirement”, especially in a time where many may choose to contribute less to pensions due to having less money.
He said: “The economic backdrop has left people facing a myriad of issues and unfortunately there are no easy solutions.
“It’s sadly understandable that households are being forced to make some tough choices in their budgets, but it’s important they do so whilst taking a longer-term look at their finances.”
He suggested that people look into their workplace pensions.
As a way to incentivise paying in, people need to make sure they are getting the best deal possible.
Some employers will match employee contributions so it is important people at least ask. The match could be the reason to keep one’s money invested.
Mr Glancy said: “Having a decent employer or personal pension in place is one of the best ways to plan for your future financial well-being.
“People should think twice before making decisions such as opting out of their scheme, which could result in long-term pain for short-term gain.
“As a guide, we recommend that an individual should look to save a minimum of 12 percent of their salary to secure a consistent quality of life.
“However aiming for at least 15 percent is more likely to provide a comfortable retirement.”
He explained that for people in their 40s, it’s “the perfect time” to review their plans to check if they are on track.
Britons should not shy away from knowing the whole picture as it could potentially help them in the future.
He continued: “While planning for retirement is something people of all ages should be doing, for those in their forties, it’s the perfect time to start reviewing whether you’re on track for a comfortable retirement.
“For example, reviewing your pension contributions, finding any lost pensions, combining old pensions into one pot and understanding where your pensions are invested and whether they need to be updated to ensure the best possible return.
“If the last few years have taught us anything, it’s that you can’t predict what’s around the corner.
“But you can put yourself in good stead by reviewing your finances, both in the moment and for your future self.
“Seeking financial advice or getting support from professionals can be a real help – whether it’s a financial adviser or through the Government’s free money advice service, MoneyHelper.”
It’s tricky to know how much money someone will need stashed away to retire and live a lifestyle they’re happy with.
There’s no such thing as a minimum retirement income, and how much they’ll need to budget will depend greatly on their unique lifestyle.
It’s best to start saving for retirement as early as someone can.
Also, it’s good to know what state benefits one will be entitled to.
As long as someone has made 35 years of National Insurance (NI) contributions (either through work or by claiming certain benefits), they’ll be entitled to claim a state pension from the age of 66.
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