In May this year, there was a great programme on ITV called Tonight Pensions: Are You Saving Enough? It is available on YouTube and we really recommend watching it.
The programme stated that one in four people are not saving enough into their Pension or don’t even have a Pension (if they are not covered by auto-enrolment). With the average Pension pot for males in the UK at £179,000 and for women £35,800, it is clear that as a nation we are not saving enough into Pensions – a point we make regularly to all our Clients so that they and their families can be aware this is something they need to plan for.
The programme challenged three people to live on their projected Pension amounts for a week, based on what they are saving now (minus any projected bills):
- A 45-year-old male, who only started paying into a pension at age 40 at a rate of £75 per month, which his employer matches (£150 per month total contribution):
- He received £42.50 disposable income per week
- A 38-year-old female, who has an NHS pension from 16 years of service, who is now self-employed and saves £400 per month into a pension:
- She received £270 disposable income per week
- A 21-year-old male, who is self-employed and doesn’t pay into any pension:
- He received £42 disposable income per week
One of these people featured paid for financial advice and saved the most into her pension. She received the most benefit in retirement. The programme really highlighted the benefit of getting sound independent advice from a Financial Planner. Be wary of those planners who are employed by specific pension companies, as they will be financially rewarded for their sales by the provider and will, therefore, be more likely to be motivated to sell you specific products.
In a world where 51% of people prioritise home improvements and holidays over their retirement pot, it really is imperative that we pass on to future generations the importance of saving into a Pension for their financial independence.
To find out more about the show, details are available at ITV News
Redwood is one of the Souths’ leading Pensions, Investments, Wills, Trusts & Estate Planning providers and we are dedicated to helping families to grow, protect and enjoy their wealth. With our unrivalled knowledge of Estate Planning and Probate, we can advise on any situation. Join us at one of our Free Public Information Seminars: Book online Book Me A Place!, Call us on 01489877 547 or Email firstname.lastname@example.org to book an obligation free Initial Meeting with us to review your financial planning needs.