Pension news

Pension news http://www.savingforretirement.co.uk Equity release 'could help finance retirement' Despite next week's increase in the state pension, equity release body Safe Home Income Plans (Ship) says pensioners will still face financial difficulties as the recession continues to deepen. The UK state pension increases to £7.25 per week for couples and £4.55 per week for single pensioners from April 6th. Andrea Rozario, director general of Ship, welcomes the rising state pension but says people saving for retirement could dramatically increase their income with equity release. Stalling pension provision and an ageing population means the UK faces a "very real" retirement funding crisis, according to Ms Rozario. "The average 70-year-old equity release customer could typically raise £61,500 from their £205,000 property," she adds. Parliament recently held a debate in which Baroness Hollis of Heigham emphasised the need for the government to consider equity release as a viable tool for financing retirement. She called for clarification that older people who adopt the scheme will not have their pension credits withdrawn.<img alt="ADNFCR-8000099-ID-19106625-ADNFCR" src="http://feeds.directnews.co.uk/feedtrack/justcopyright.gif?feedid=8000099&itemid=19106625" /> <script type="text/javascript" language="javascript" src="http://feeds.directnews.co.uk/client_includes/bookmarking/bookmarks.js">?</script> http://www.savingforretirement.co.uk/Equity-release-'could-help-finance-retirement'-175_1_19106625.html Fri, 03 Apr 2009 11:30:55 +0000 Online state pension forecast service launched People saving for retirement are being given an estimate of the amount of basic and state pension they may receive based on their National Insurance (NI) contributions. The state pension forecast service launched by AWD Chase de Vere allows people approaching retirement to assess whether their savings are on track, or whether they need to put aside more to achieve their expectations. "All too often people put pension planning on the back burner, no more so than in today's difficult economic climate, yet it is essential that people plan ahead," says David Smyth, AWD Chase de Vere's director. The company is offering an online pension forecast service to allow employees to review savings arrangements at their convenience. Just Retirement recently reminded people who will soon be drawing pensions that the credit crunch could mean they need more than they thought to retire comfortably. Goods and services used by pensioners have seen a higher inflation rate than those used by other sectors of society, meaning their money does not stretch as far.<img alt="ADNFCR-8000099-ID-19104097-ADNFCR" src="http://feeds.directnews.co.uk/feedtrack/justcopyright.gif?feedid=8000099&itemid=19104097" /> <script type="text/javascript" language="javascript" src="http://feeds.directnews.co.uk/client_includes/bookmarking/bookmarks.js">?</script> http://www.savingforretirement.co.uk/Online-state-pension-forecast-service-launched-175_1_19104097.html Thu, 02 Apr 2009 10:18:53 +0000 PPF announces 100th pension scheme protected The Pension Protection Fund (PPF) is celebrating the 100th pension scheme to transfer into its care. Some 343 members of the Bristol-based Brooks Service Group pension scheme are being told they will receive PPF compensation when they retire. Recently the organisation also added two Haden Staff pension schemes and Thorndyke Limited's retirement and life assurance scheme to its guardianship. "Today's announcement that 100 schemes have now transferred to the PPF demonstrates clearly that we are doing what we were set up to do," says Partha Dasgupta, outgoing chief executive of the PPF. PPF aims to protect people's pensions when their employers go into administration, a growing concern among workers as the recession hits businesses around the UK. The Liberal Democrats recently expressed concern that PPF risked being overwhelmed as the size of deficits in final salary schemes continues to grow, saying the organisation already has a deficit of £500 million.<img alt="ADNFCR-8000099-ID-19102153-ADNFCR" src="http://feeds.directnews.co.uk/feedtrack/justcopyright.gif?feedid=8000099&itemid=19102153" /> <script type="text/javascript" language="javascript" src="http://feeds.directnews.co.uk/client_includes/bookmarking/bookmarks.js">?</script> http://www.savingforretirement.co.uk/PPF-announces-100th-pension-scheme-protected-175_1_19102153.html Wed, 01 Apr 2009 12:02:07 +0000 'Use Isas to fund pensions' A wealth management service is recommending people saving for retirement use Isas as a way of funding their pension contributions. Research from Fidelity International recently showed that anyone who waits for the launch of personal accounts in 2012 to start saving for retirement could be missing out on a bigger pension pot. According to the figures, getting a three-year head start by joining a company pension scheme now could mean up to an extra £136 a month in retirement. Marc Ruse, chartered financial planner at Fiducia, said anyone with an Isa should now "consider transferring part of that fund into a pension fund", as they will see a 20 per cent increase in value when the tax relief is added. He advised people to get saving for their pensions as soon as possible, adding: "Using your Isa to fund it is a great way of securing more pension money."<img alt="ADNFCR-8000099-ID-19097161-ADNFCR" src="http://feeds.directnews.co.uk/feedtrack/justcopyright.gif?feedid=8000099&itemid=19097161" /> <script type="text/javascript" language="javascript" src="http://feeds.directnews.co.uk/client_includes/bookmarking/bookmarks.js">?</script> http://www.savingforretirement.co.uk/'Use-Isas-to-fund-pensions'-175_1_19097161.html Mon, 30 Mar 2009 09:21:33 +0000 Recession 'could mean later retirement' The downturn in the UK economy has forced almost a third of small- and medium-sized business owners to put the brakes on their retirement plans, a survey has found. Research from the University of Nottingham has revealed that 31 per cent of those polled say they will be managing their businesses for longer to ensure they have enough money to retire. Many of the businesses surveyed raised concerns over the government's reluctance to help small businesses access credit, while an even greater number blamed banks for calling in loans and tightening up overdrafts. Additionally, the recession will mean more bad news for people saving for retirement as nearly a quarter of firms expect to shed staff over the coming months. People looking forward to their pensions may need more than they previously thought, as figures from the Institute for Fiscal Studies recently revealed that inflation is rising for pensioners more than any other group.<img alt="ADNFCR-8000099-ID-19096494-ADNFCR" src="http://feeds.directnews.co.uk/feedtrack/justcopyright.gif?feedid=8000099&itemid=19096494" /> <script type="text/javascript" language="javascript" src="http://feeds.directnews.co.uk/client_includes/bookmarking/bookmarks.js">?</script> http://www.savingforretirement.co.uk/Recession-'could-mean-later-retirement'-175_1_19096494.html Fri, 27 Mar 2009 16:50:14 +0000 Council tax rise 'will hit pensioners' Two older people's charities have criticised this year's expected three per cent increase in council tax. Age Concern and Help the Aged say the tax hike will hit pensioners hard, as they are often "asset rich, but cash poor" meaning the size of their property will see them paying more. Inflation rates remain particularly high for people in retirement in comparison with younger age groups, and while this year's state pension uprating will be some help, the charities warn that older people are more vulnerable to the recession than most. Anna Pearson, Help The Aged's policy manager, reminded people drawing a pension to check they are receiving all the benefits they are entitled to. "Only 45 per cent of older people claim the council tax benefit that is rightfully theirs," she added. Just Retirement recently highlighted the difficulties faced by pensioners in the current economic turmoil and urged people approaching or in retirement to look carefully at their financial circumstances to avoid getting into difficulty.<img alt="ADNFCR-8000099-ID-19095096-ADNFCR" src="http://feeds.directnews.co.uk/feedtrack/justcopyright.gif?feedid=8000099&itemid=19095096" /> <script type="text/javascript" language="javascript" src="http://feeds.directnews.co.uk/client_includes/bookmarking/bookmarks.js">?</script> http://www.savingforretirement.co.uk/Council-tax-rise-'will-hit-pensioners'-175_1_19095096.html Fri, 27 Mar 2009 10:14:24 +0000 'Act now' to make the most of personal accounts People saving for retirement are being encouraged not to wait until the launch of personal accounts in 2012. Fidelity International says if a 25-year-old starts saving now instead of in 2012, they could end up with as much as a £175,000 boost to their pension pot. Millions of Britons will be offered a workplace retirement savings scheme when personal accounts launch. Workers who have already have a company pension will be automatically enrolled into the scheme instead of a personal account. Julian Webb, head of UK defined contribution pensions at Fidelity International, advises anyone who has not joined a company pension to "reconsider that decision now". "If they choose to add in their own money as well then the government will bump this up with tax relief," he adds. However, earlier this month the scheme was criticised by one independent financial advisor. Dr Ros Altmann said if the government continues to means test 40 per cent or more of pensioners, personal accounts "cannot work properly".<img alt="ADNFCR-8000099-ID-19093399-ADNFCR" src="http://feeds.directnews.co.uk/feedtrack/justcopyright.gif?feedid=8000099&itemid=19093399" /> <script type="text/javascript" language="javascript" src="http://feeds.directnews.co.uk/client_includes/bookmarking/bookmarks.js">?</script> http://www.savingforretirement.co.uk/'Act-now'-to-make-the-most-of-personal-accounts-175_1_19093399.html Thu, 26 Mar 2009 12:23:00 +0000 Pensioners 'need help' to withstand recession Recent figures show that money is getting tighter for pensioners, despite a fall in the Retail Prices Index. The prices of products and services retired people tend to buy have not fallen in line with other market sectors, with research from the Institute for Fiscal Studies showing that inflation for 70 to 79-year-olds was 5.6 per cent on average in January. Just Retirement is warning those drawing a pension that this, combined with the reduced return on their savings, means they should look carefully at their financial circumstances. Retirement specialist at Just Retirement Nigel Barlow said these figures could mean a dramatic fall in living standards for older people. He advised pensioners to use some of their savings "to purchase an annuity", adding that maximising the tax relief available would also supplement their income. Two charities, Help The Aged and Age Concern, are urging any older people struggling with their finances to get in touch. Anna Pearson, policy manager for Help the Aged, has also called on ministers considering the next budget to focus on "the long-term solutions pensioners need".<img alt="ADNFCR-8000099-ID-19090545-ADNFCR" src="http://feeds.directnews.co.uk/feedtrack/justcopyright.gif?feedid=8000099&itemid=19090545" /> <script type="text/javascript" language="javascript" src="http://feeds.directnews.co.uk/client_includes/bookmarking/bookmarks.js">?</script> http://www.savingforretirement.co.uk/Pensioners-'need-help'-to-withstand-recession-175_1_19090545.html Wed, 25 Mar 2009 08:43:55 +0000 Tax efficiency 'can boost pensions' An investment management firm is reminding people saving for retirement to ensure their finances are in good shape before the end of the tax year. Rensburg Sheppards has published a seven-point checklist for investors to make sure their savings and pensions are as tax-efficient as possible before April 5th. The list advises people to maximise contributions to personal pensions, retirement annuities or additional voluntary contribution plans, as well as using stakeholder payments of £3,600 for non-earning family members. Graham Barber, head of financial planning at Rensburg Sheppard, said good financial planning is now more important than ever, adding: "Investors also need to treat maximising the tax efficiency of investments as a priority." Earlier this month the Low Incomes Tax Reform Group (LITRG) also advised high-earning over-65s that their tax-free personal allowance is increased, although this can be withdrawn if their income is too high. To counter this, LITGR suggested paying pension contributions and even deferring the state pension to reduce the amount of tax paid on it.<img alt="ADNFCR-8000099-ID-19088413-ADNFCR" src="http://feeds.directnews.co.uk/feedtrack/justcopyright.gif?feedid=8000099&itemid=19088413" /> <script type="text/javascript" language="javascript" src="http://feeds.directnews.co.uk/client_includes/bookmarking/bookmarks.js">?</script> http://www.savingforretirement.co.uk/Tax-efficiency-'can-boost-pensions'-175_1_19088413.html Tue, 24 Mar 2009 09:44:20 +0000 Pensions management 'needs to change' A trade body has described how the investment management industry will need to change as people saving for retirement become more aware of their options. The Investment Management Association (IMA) said the move from defined contribution pensions to fund-like products means investment management is "no longer hidden" behind a defined benefit pension or within an endowment product. Instead, IMA's chief executive Richard Saunders, said investment management "is becoming the product." He believes that as more people take their finances into their own hands, investors will need to be educated on the consequences both of not saving enough and risking too much. Earlier in the month Mr Saunders responded to the Personal Accounts Delivery Authority's (PADA) paper on personal accounts, calling for a more flexible regulatory regime and more choice for people saving for their pensions. Mr Saunders added: "As DC pension saving becomes mainstream, the decision about how to maintain income in retirement will be of increasing importance."<img alt="ADNFCR-8000099-ID-19087347-ADNFCR" src="http://feeds.directnews.co.uk/feedtrack/justcopyright.gif?feedid=8000099&itemid=19087347" /> <script type="text/javascript" language="javascript" src="http://feeds.directnews.co.uk/client_includes/bookmarking/bookmarks.js">?</script> http://www.savingforretirement.co.uk/Pensions-management-'needs-to-change'-175_1_19087347.html Mon, 23 Mar 2009 15:46:43 +0000 Baby boomers "fail to act" on credit crunch Two-thirds of people aged 45 or over have failed to review their retirement plans as a result of the credit crunch, according to research from the Hartford. Figures show that over a quarter are committed to their old plan of action, and a similar number think their financial situation is beyond their control. The report identifies three distinct groups in this age range 'crunch denial', 'crunch drunk' and 'crunch conscious' people. Most people were found to be in the first group, considered to be the one most likely to take no action over their pension plans. 'Crunch conscious' people are those in the most favourable position, having already monitored their assets or consulted a financial adviser. Hartford Life's managing director Michael Rudge says many people nearing retirement still suffer from an "over-reliance" on property. He adds: "Many people are understandably falling foul of classic saving mistakes." Recent figures from the Prudential suggest that pensioners expect a £2.9 billion income shortfall this year.<img alt="ADNFCR-8000099-ID-19084707-ADNFCR" src="http://feeds.directnews.co.uk/feedtrack/justcopyright.gif?feedid=8000099&itemid=19084707" /> <script type="text/javascript" language="javascript" src="http://feeds.directnews.co.uk/client_includes/bookmarking/bookmarks.js">?</script> http://www.savingforretirement.co.uk/Baby-boomers-fail-to-act-on-credit-crunch-175_1_19084707.html Fri, 20 Mar 2009 13:56:05 +0000 Pensions reviews 'can't wait' A financial services provider is urging people to review their pension schemes. Zurich says the economic uncertainty means Brits need advice now and cannot afford to wait until their next scheduled meeting with their adviser. Its pensions review campaign will begin with a series of regional seminars around the country, as well as a Pension HelpPoint team to provide administrative support for intermediaries. Dave Lowe, Zurich's pension management director, says financial pressures will draw those saving for retirement further towards capital protection as their attitude to risk becomes more cautious. He continues: "Advisers can work with their clients to ensure their investment strategies continue to correspond with their own needs." The initiatives follow the recommendations made by the Financial Services Authority (FSA), which advocates the need for clear and transparent processes. A December investigation by the FSA found 16 per cent of advice given on switching pensions to be unsuitable, with a quarter of firms considered to be giving a high proportion of bad advice.<img alt="ADNFCR-8000099-ID-19081632-ADNFCR" src="http://feeds.directnews.co.uk/feedtrack/justcopyright.gif?feedid=8000099&itemid=19081632" /> <script type="text/javascript" language="javascript" src="http://feeds.directnews.co.uk/client_includes/bookmarking/bookmarks.js">?</script> http://www.savingforretirement.co.uk/Pensions-reviews-'can't-wait'-175_1_19081632.html Thu, 19 Mar 2009 09:58:21 +0000 Women encouraged to buy back NI contributions Women are being urged to buy back their National Insurance contributions before the end of the tax year to maximise their pensions. Scottish Widows reminds women that extra contributions currently cost £8.10 per week, but they are set to rise to £12.05 from the beginning of April. Those who have taken time off work since 1996 could "drastically increase their pensions" through buying back missing contributions, according to Scottish Widows' head of pensions market development Ian Naismith. He encourages women to check the Pensions Service website to find out by how much they could increase their state pension entitlement. Mr Naismith adds: "This is particularly important for women who reach age 60 before April 2010." A 2008 study by Scottish Widows found that having children can lead to inconsistent working patterns for women, which can prove a major barrier to saving consistently into a pension. The figures revealed a gender gap in saving for retirement, with 46 per cent of women believed to be saving adequately compared to 55 per cent of men.<img alt="ADNFCR-8000099-ID-19080436-ADNFCR" src="http://feeds.directnews.co.uk/feedtrack/justcopyright.gif?feedid=8000099&itemid=19080436" /> <script type="text/javascript" language="javascript" src="http://feeds.directnews.co.uk/client_includes/bookmarking/bookmarks.js">?</script> http://www.savingforretirement.co.uk/Women-encouraged-to-buy-back-NI-contributions-175_1_19080436.html Wed, 18 Mar 2009 15:20:35 +0000 Older employees 'prefer pensions to bonuses' Pension schemes are among British workers' preferred employment benefits, according to research from Friends Provident. Almost a quarter of those surveyed picked an employer contributory pension scheme as their favourite benefit. Predictably, pensions were most popular among those approaching retirement age, while under-50s preferred the short-term advantage of an annual bonus. Older people in the study were also more prone to refuse a job offer if it had unattractive pension benefits. Friends Provident's head of corporate pensions marketing Martin Palmer said the trend for people to look ahead to retirement is driven by the challenging economic times. He commented: "A pension is a very important benefit and it will continue to have a major impact later on in the employee's life." The advice comes shortly after research from Prudential indicated almost two-thirds of people retiring in 2009 believe they will need an additional income to supplement their pensions.<img alt="ADNFCR-8000099-ID-19078342-ADNFCR" src="http://feeds.directnews.co.uk/feedtrack/justcopyright.gif?feedid=8000099&itemid=19078342" /> <script type="text/javascript" language="javascript" src="http://feeds.directnews.co.uk/client_includes/bookmarking/bookmarks.js">?</script> http://www.savingforretirement.co.uk/Older-employees-'prefer-pensions-to-bonuses'-175_1_19078342.html Tue, 17 Mar 2009 15:59:48 +0000 Financial planning 'could make the difference' in retirement Those saving for retirement are being offered financial advice from one of the UK's leading investment management firms. Rensburg Sheppards is urging investors to wake up to the severity of the economic crisis, and take steps to ensure they are making the most of their money. Graham Barber, head of financial planning at Rensburg Sheppards, stresses the importance not only of following the "basic principles" of personal financial planning but also maximising tax efficiency. He adds that it is essential to take full advantage of contribution levels for personal pensions and to consider stakeholder payments for non-earning spouses and children. The advice comes soon after research from Prudential found that UK workers drawing their pensions in 2009 will be, on average, £884 a year worse off than those who began drawing it last year. Additionally, figures show the income difference between a pension and an average salary will equate to a wage cut of £7,129.<img alt="ADNFCR-8000099-ID-19076009-ADNFCR" src="http://feeds.directnews.co.uk/feedtrack/justcopyright.gif?feedid=8000099&itemid=19076009" /> <script type="text/javascript" language="javascript" src="http://feeds.directnews.co.uk/client_includes/bookmarking/bookmarks.js">?</script> http://www.savingforretirement.co.uk/Financial-planning-'could-make-the-difference'-in-retirement-175_1_19076009.html Mon, 16 Mar 2009 15:58:35 +0000