When it comes to providing pension advice, the best tip we can give you is: Don’t rely on the state pension to sustain you in old age! According to a recent report, an estimated 6 million UK citizens over the age of 50 don’t have a pension plan of any description. Approximately 1.2 million people currently in retirement receive the state pension only. The national minimum annual wage is just under £11,500 at present but the minimum state pension is less than £5,600 per annum though this can rise to just over £9,600 when additional benefits are taken into account.
Nonetheless, there are retired individuals living on less than half the UK minimum wage annually. It is clear that these unfortunate people didn’t receive good pension advice or else they simply didn’t listen. Of the millions of over 50s with no pension plan in place, over 40% said that they couldn’t imagine being forced to live even on minimum wage let alone on a state pension far below this.
If you haven’t already started looking for pension advice to save money once you retire, do it now before it’s too late. A report from a respected organisation that specialises in pensions suggests that over 50% of over 50s today will be forced to work until they are 77 years old. We cannot expect help from the UK government who are experiencing a massive shortfall in pensions as it is. The plan is to increase the pension age to 66 by 2020 and 67 a further eight years later.
In fact, the government wishes to abolish the aforementioned benefits and switch to a flat pension rate of just £140 a week. There has never been a more crucial time to seek pension advice and get your retirement finances in check. Contentment and even happiness in later life depend on it.
This article has been written in good faith. It is believed to be accurate at the time of writing and is for information only.