Daily Archives: November 2, 2011

Checking & Savings, Financial, Financial Information, Financial Services, Investment, IRA, Money, Personal Finance, Retirement

Prudential Reveals Research On The Importance Of Women’s Retirement Plans

Prudential has revealed that nearly half (46 per cent) of women over the age of 40 who live with a partner have no pension of their own, according to new research into couples’ attitudes to retirement.

The extent of women’s reliance on a partner’s pension and the State is not the only shock finding from the research, which also highlights that many UK couples could be sleep-walking into retirement poverty as they have no idea what pension income they will need to live on.

More than half (56 per cent) of couples aged over 40 have not worked out how much money they will need to live on in retirement, with two in five (40 per cent) admitting to having no financial plans in place for life after work.

British couples also seem reluctant to discuss with each other the finances that will support them in later life. One in five couples (20 per cent) admit to never having discussed joint retirement financial planning, while only half of those who have already retired made a joint decision about the annuity they bought.

Vince Smith-Hughes, head of business development at Prudential, said: “Pensions may not seem like the most exciting topic for a couple in their forties to be discussing, but couples who have not put time aside to discuss their retirement income plans run the risk of spending their later lives worse off than they had expected.”

In regard to retirement planning, Smith-Hughes stressed how important it is for women to discuss their future finances with their partner, and preferably with a financial adviser too. According to Smith-Hughes, women who don’t engage in these discussions could find themselves in financial trouble, especially if they outlive their loved one.

Smith-Hughes continued: “People may feel they can’t afford to significantly boost their retirement savings in the current financial climate, but taking even the smallest of steps can have a positive impact. Joining a workplace pension scheme, considering a joint life annuity, so the income will continue after one partner dies, and topping up National Insurance contributions are all options which can increase income in retirement. These crucial issues should be discussed between couples and, in turn, with their financial advisers.”

Via EPR Network
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Checking & Savings, Financial, Financial Information, Financial Services, Investment, IRA, Money, Personal Finance, Retirement

Standard Life Reveals Losing A Loved One Is Greatest Fear In Retirement

Standard Life has revealed that a third (32 per cent) of retired Britons declared that losing a partner, loved one or close friend is their greatest fear in retirement.

The savings and investment specialist Standard Life is using the research to encourage the public to consider their estate planning requirements, including the creation of a Will, so they can ensure their loved ones are financially secure after their death.

Standard Life is highlighting to the public they should seek professional advice as the legislation associated with passing on wealth is very complicated and the rules between married and civil partnered couples does not apply to cohabiting couples or close friends. The simplest way for individuals to ensure their estate is paid to the right people is to create a legally binding Will – previous research from Standard Life showed that as little as 48 per cent* of the people in the UK have a Will in place.

Further results from the research shows in light of the current inflationary pressures the public is facing, the rising cost of living (20 per cent) is the retired population’s country’s second worst fear in retirement and worries about getting returns on their savings and investments (11 per cent) coming in third for those surveyed.

Julie Curtis, technical manager at Standard Life, said: “Regardless of an individual’s age losing a loved one can have a serious financial impact, but this problem is accentuated in retirement. And while married and civil partner couples benefit from the spousal inheritance tax exemption and the transferable nil rate band, cohabiting couples or close friends don’t.

“The complications of dying without a Will can be devastating on others and this is made even worse when going through the heartache of personal loss. Seeking the right advice when creating a Will ensures loved ones will be financially secure and that their wealth is passed on correctly. The cost of creating one will be far less than any legal fees your family, partner or friends will incur in trying to reclaim the estate.”

The research also shows that nearly half (47 per cent) of the UK want to leave an inheritance to their children, with a tenth (11 per cent) directing it to their grandchildren.

Julie continued: “It’s understandable that parents and grandparents want to pass their wealth on to the next generations and they should ensure they have a Will in place, which reflects this. Dying without one can create a complicated and costly process, possibly causing family rifts and further grief for those left behind.”

Via EPR Network
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Checking & Savings, Financial, Financial Information, Financial Services, Investment, IRA, Money, Personal Finance, Retirement

Standard Life Announces That Economic Climate Could Force Retirement Rethink

Standard Life, the savings and investment specialist, has published new insight that suggests that the UK could be heading towards a perfect retirement storm; one in five (21%) of 45-65 year-olds who have financial plans in place to provide for their long term future no longer feel that their financial plans will support them into the future. Six per cent in this age group who aren’t already retired don’t think they will ever be able to retire, equating to over three quarters of a million people.

Of those who have financial plans in place to provide for their long term future, 64% of 45-65s feel confident that their financial plans will support their future post retirement. Twenty-one per cent of these adults no longer feel their plans will support them into the future, with a further 10% having never felt confident. Thirty-seven per cent of 45-65s have no financial plans in place for their long-term future; yet 72% of people currently aged between 45 and 65 who aren’t retired think they will retire between 61 and 70 years old.

John Lawson, Head of Pensions Policy at Standard Life said: “The current financial crisis has brought into sharp focus the need to make and review appropriate plans. This will clearly be challenging but there are many things you can do to make your retirement years as secure as possible.”

As part of the Changing Face of Retirement research, Standard life has published a list of top tips to help people re-engage with their financial planning, which includes seeking professional advice, continually reviewing financial goals, making a clear plan, reviewing investments, considering deferment of the state pension and increasing savings. Also included in Standard Life’s top tips is to claim tax-relief, as Standard Life estimates that 300,000 people are not claiming this currently.

Via EPR Network
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