Tag Archives: pensions

pensions

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

Workers Beyond Retirement Age To Double In 10 Years

Prudential has revealed that UK businesses are bracing themselves for a surge in staff looking to delay retirement with around 1.8 million people expected to be working beyond traditional retirement ages in just 10 years.

The findings from new research commissioned by Prudential among finance directors at UK businesses found 24% of companies expect staff to work beyond retirement age in the next 10 years, with the proportion of people in the workforce who are past traditional retirement ages expected to more than double to 1.8 million people.

Larger companies expect to see an even greater proportion of their workforce working beyond retirement, with 39% of finance directors at larger firms expecting to have to accommodate requests from staff to work longer.

UK companies anticipate this will mean around 6.3% of their workforce (equivalent to 1.8 million people across the UK working population) will be made up of people working beyond statutory retirement ages in 10 years, more than double the current proportion of 2.6% of company workers (equivalent to around 752,700 people***) who currently work past retirement.

The study also found that in the past 12 months alone, 7% of finance directors have reported an increase in the number of employees asking to work past traditional retirement ages.

Martyn Bogira, Prudential’s Director of Defined Contribution Solutions, said: “As health and longevity continue to improve and people look to fund a longer life in retirement, it is inevitable that compromises have to be made.

“The statutory retirement age for men and women is due to rise to 68 by 2046, so working longer will be a fact of life for those entering the workforce today but these findings suggest that increasing numbers of pensioners will be forced to work later far sooner than this. Employers have told us that their staff costs could rise as their employees work for longer.

“Workers face the stark choice of either having to save more for their pension from an earlier age or having to work longer if they are to avoid taking a significant drop in their standard of living in retirement. Early pension saving is critical and we strongly encourage people not to delay starting a pension.”

The research also identified a clear North/South divide. Companies in the north of the country expect an average of 16.2% of their staff to work past the statutory retirement age compared with an average of 2.4% in Greater London and the South East.

Via EPR Network
More Financial press releases

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

Prudential Reports Strife Begins At 40 For Pensions Late Starters

Prudential has revealed that workers who don’t pay a penny into a pension until they reach the age of 40 may need to set aside upwards of 33 per cent of their salary until age 65 if they want to retire on the holy grail pension of two-thirds annual salary.

But for someone starting their pension at 30 the amount drops to 20.5 per cent of salary and at age 18 it falls to 12.9 per cent – just over a third of the amount a 40-year-old would be required to pay into a pension for the first time.

Based on the current average salary of £26,020 a 40-year-old worker starting their pension plan today and aiming to retire at 65 would need to put aside the equivalent of £728.06 a month, or £23.94 a day, from combined employee and employer contributions.

A 30-year-old worker’s pension savings would need to total £443.59 a month or£14.58 a day, while an 18-year-old starting work today would need to save an amount equivalent to £9.19 into a pension every day of their life until the age of 65 in order to achieve the optimum pension of two-thirds the current average annual salary of £26,020.

Martyn Bogira, Prudential’s Director of Defined Contribution Solutions, said: “The findings show very clearly that anyone earning an income should try to begin putting money into a pension fund as soon as possible as the cost of delay is considerable; for someone aged 40 who’s contributing to a pension for the first time, the optimum pension contributions are three times higher than for someone aged 18.

“Understandably, making payments into a pension at age 18 may be a struggle and seem insignificant but even the smallest of contributions has the potential to make a massive difference. Arguably, the simplest and most beneficial way to do this is to pay into an employer’s defined contribution scheme and take advantage of any contributions an employer will also make to help make up the optimum amount needed to retire on two-thirds salary.”

Via EPR Network
More Financial press releases

Financial, Financial Information, Financial Services, Insurance, Insurance Services

LV= Is Inviting Its Members, Customers And Website Visitors To Share Photos Of What They Love In Life

LV=, insurance, pensions and investment group is inviting its members, customers and website visitors to share photos of what they love in life, and be in with the chance of winning £1,500.

The competition’s theme ties in with LV=’s overall aim as a financial solutions and insurance provider, to help people look after the things that they love in life.

The photo could be of a family member or friend, a pet, or a treasured possession like a car or house, even a place they love to go on holiday.

The online photo competition judges aren’t looking for an ‘expert’ photo, but a picture that captures something that the entrant really cares for, in the most original, visually appealing and self-explanatory way.

Details of the competition have already been emailed to a large number of LV=’s customers and to competition websites, and already some excellent entries have been received and loaded up to view. And even if entrants don’t win the first prize of£1,500, there are three runners-up prizes of £250 to be had.

To take part in the competition entrants will need to register themselves as a member of the LV= online community, and then it’s simply a case of loading up their photos. The closing date is 31 October 2009.

Alan Lay, LV=’s Web Content Manager, said: “The LV= community has been very popular with our members since its launch, and this new competition is an ideal way for existing and new members to share what they really love in life with the wider community. Judging by the high quality of photos that we’ve already received, it’s going to be tough to choose the winners, though we’re sure that there are even better examples out there just waiting to come in.”

Via EPR Network
More Financial press releases

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

Prudential Reveals That Advisers Pin RDR Hopes Online

Prudential has released research demonstrating the need for providers to constantly adapt their services to help advisers in both the online and offline environment, with more than half of the advisers surveyed (58%) ranking better quality or more online information and service options as the most important element of the product provider/distributor relationship surrounding preparations for Retail Distribution Review (RDR).

While improving online servicing is seen as a must do by advisers, they also believe that solid account management relationships must go hand-in-hand with technology. This sentiment was highlighted by 40% of advisers citing more or better dialogue with an account manager as the next most important service element surrounding their preparations for RDR. With a combination of expert face-to-face and telephone account management teams readily available to guide advisers through obtaining and completing sales, this is a service Prudential is already supports.

Ian McKenna, Director of the Finance and Technology Research Centre (FTRC) said: “RDR will make it essential for advisers to focus on the cost of doing business in ways they have never needed to previously. It is not giving the advice that takes excessive time but the preparation. Collating information manually is hugely time consuming, electronic services can deliver in seconds what might otherwise take hours. Historically the cost of those hours has been subsidised by commission, when it is the client potentially paying for the time racking up hours in this way will no longer be acceptable. Automated delivery of information to advisers will be a hygiene factor in a Post RDR environment.”

57% of advisers claimed that their volume of client enquiries regarding retirement planning remains unchanged. This is encouraging news in the current economic climate, proving that it is vital for providers to arm advisers with all the necessary tools to deal with their continuous day-to-day business.

Jon Cross, Head of eBusiness at Prudential said: “Our research shows that advisers are becoming increasingly dependent on online services to help guide them through the changes that RDR will bring. Prudential works very closely with advisers to develop its online services, we constantly review our content and navigational functionality, and will of course continue to evolve our systems to help advisers as they change their business models ready for RDR. We are committed to providing a high level of service to advisers to ensure that they spend as little time on administration as possible. Taking their business online frees up time that would have traditionally been spent processing paperwork.”

The benefits of online servicing are clear for advisers, allowing easy access to brochures, illustrations and valuations outside normal office hours. Prudential’s adviser website houses a wealth of useful material including product guides, support literature, real-time valuations and market analysis from industry experts. Advisers can also find a variety of interactive tools covering pension planning, drawing an income and annuitisation. The ‘Support for you’ section provides advisers with updates and news regarding regulatory issues such as TCF and RDR. Also under this section advisers can hear what Prudential experts have to say as they explore various opportunities and considerations advisers face in helping their clients save for and provide an income in their retirement.

Prudential surveyed 123 independent financial advisers during April 2008.

About Prudential:
“Prudential” is a trading name of The Prudential Assurance Company Limited, which is registered in England and Wales. This name is also used by other companies within the Prudential Group, which between them provide a range of financial products including life assurance, annuity products – including retirement annuity, pensions, savings and investment products. Registered Office at Laurence Pountney Hill, London EC4R 0HH. Registered number 15454. Authorised and regulated by the Financial Services Authority.

Via EPR Network
More Financial press releases

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

According To The Latest Survey From Prudential, Financial Advisers Are Not Convinced That Their Clients’ Retirement Planning Is On Course

The new Prudential survey found that over two-fifths of advisers (43 per cent) said they are either not that confident or not at all confident, that their clients’ retirement planning is on course, compared to just a third (34 per cent) who said they are either reasonably confident or very confident.

However despite their doubts about how well their clients are prepared for retirement, a third of advisers (33 per cent) actually reported an increase in the number of enquiries from clients about pensions and retirement planning over the past three months. Additionally, half of the advisers surveyed said they had seen an increase in the number of clients using the open market option when shopping around for their annuity in the past three months.

Andy Curran, Director of Intermediated Sales at Prudential, said: “Advisers and providers have taken a fair amount of flak over the years for apparently not informing people that they have the freedom to shop around for the retirement products which best suit their needs.

“It’s good to see that half of advisers say they’ve seen an increase in the number of people using the open market option but it seems to me that it’s taken a financial crisis for people to start their financial planning.

“What is worrying is the feedback from advisers that their clients’ retirement planning is not on course, especially in these unprecedented times when personal financial security should be top of the agenda for everyone.”

Prudential surveyed 123 independent financial advisers during April 2008.

About Prudential:
“Prudential” is a trading name of The Prudential Assurance Company Limited and Prudential Unit Trusts Limited. This name is also used by other companies within the Prudential Group, which between them provide a range of financial products including life assurance, pensions, savings and investment products. The Prudential Assurance Company and Prudential Unit Trusts Limited are registered in England and Wales under number 15454 and 1796126. Registered Office at Laurence Pountney Hill, London EC4R 0HH. Authorised and regulated by the Financial Services Authority.

Via EPR Network
More Financial press releases

401K, Checking & Savings, Financial, Financial Education, Financial Information, Financial Services, Investment, IVA, Money

NS&I Has Launched A New Online Feature, The Five Questions, Featuring Sir Alan Sugar, To Encourage The British Public To Give Their Personal Finances A Much Needed Health Check

With research from NS&I revealing that 40 per cent of the population have no long-term financial plan and almost a fifth (17 per cent) don’t seek information on managing their money because it is too confusing, the need for a quick, simple way to help people review their current financial situation is clear.

The Five Questions prompt individuals to consider important aspects of their financial management, including how much debt they have and what their cash and assets are worth. Each question is designed to ensure that everyone, regardless of age or situation, really thinks about their current financial situation and plans accordingly for a secure financial future.

John Prout, Director of Customer Sales and Retention at NS&I said: “The Five Questions help focus the mind and help people make an honest and straightforward appraisal of their financial situation. This is part of our ongoing work to fulfil our duty, as an organisation in the financial services industry, to help everyone understand the basics when it comes to making financial decisions.”

Once answered, the five questions link to specific information on NS&I’s You and your money website. This is an impartial website launched by NS&I in 2008 as part of an ongoing drive to improve the public’s understanding of personal finance. The site has a dedicated financial jargon-buster guide and sections on key life stages, such as planning for a family or retirement. Just like The Five Questions, it is simple and easy to use, even for those who find finance difficult to understand.

John Prout added, “Most people are very familiar with the healthy eating model of ‘five portions of fruit and veg daily’. We want to encourage a similar mindset about financial planning to ensure people review their finances on a regular basis.”

Nick Cann, Chief Executive at the Institute of Financial Planning stated, “Asking the key questions to help you get your finances in better shape needn’t be hard work. Through basic planning techniques, individuals can then make the first step to improve their overall financial ‘fitness’. We welcome this initiative, and it aligns well with the IFP’s development of a national Financial Planning Week – scheduled for September 2009.”

You and your money has a range of useful links and tools to help people decide what action they should be taking. These include:

-pensions and personal inflation calculators
-FSA online tools
-Government online tools and calculators

NS&I plans to add further lifestyle sections to the website over time.

*The survey, which questioned people about financial planning, was carried out by TNS in 2008 among 1009 GB adults aged between 16 and 64.

About NS&I
NS&I is one of the UK’s largest financial providers with 28 million customers and over £88 billion invested. It is best known for Premium Bonds, but also offers Inflation-Beating Savings and investment accounts, Guaranteed Equity Bonds and Children’s Bonus Bonds in its range. NS&I also provides a choice of isa accounts with the direct isa and a cash isa which will remain available to new customers until 5th April 2009. All products offer 100% security, because NS&I is backed by HM Treasury. NS&I has a number of spokespeople available for interviews via ISDN line: 020 7602 4522.

Via EPR Network
More Financial press releases

Business, Financial, Financial Services, Financial Solutions, Insurance, Investment, Personal Finance, Retirement

Highway Insurance Group Acquired by LV

LV=, the UK based insurance, investment and pensions group, has announced its acquisition of the Highway Insurance Group, which includes Highway Insurance and Hero Insurance Services, further expanding the fast growing general insurance division of LV=.

The initial offer of 73.35p per share, which was recommended by the Highway Board, was made in August. Highway shareholders also received their interim dividend of 1.65p, payable at the start of October 2008. This gives an overall value of the entire issued share capital of Highway of £150m.

Fenchurch Advisory Partners acted as exclusive financial adviser to LV while Shore Capital Stockbrokers acted as corporate broker to LV=.

Mike Rogers, Group Chief Executive of LV= said: “We are pleased to have completed this deal quickly and we look forward to welcoming Highway into the LV= Group. This acquisition makes sound strategic sense and will assist us in our stated ambition to become a top five insurer in our chosen markets by 2012.”

He continued, “Highway is highly complementary to our existing general insurance operations and will provide a strong platform for growth. Putting the strengths of LV= and Highway together will enable us to compete even more effectively in the insurance broker market.”

Highway Insurance will become part of the LV= General Insurance business which is led by Managing Director John O’Roarke, who formerly headed up the Churchill and RBS Insurance businesses.

Andrew Gibson, Chief Executive of Highway, will be staying on in an advisory capacity until the end of the year, when he will be leaving to explore opportunities outside the LV= Group.

As LV= is a mutual organisation, owned by its members, Highway Insurance will be de-listed from the London Stock Exchange in due course.

About LV=:

LV= is a trademark of Liverpool Victoria Friendly Society Limited (LVFS) and LV= is a trading style of the Liverpool Victoria group of companies. LV= employs over 2,700 people, serves more than 2.5 million customers and members, and manages more than £7.7 billion on their behalf. LV= is the UK’s largest friendly society and a leading mutual financial services provider, providing home insurance and car insurance well as travel and pet insurance direct to consumers. It also offers insurance products exclusively to brokers via the Highway and ABC Insurance brands.


Via EPR Network
More Financial press releases

Banks, Checking & Savings, Financial, Financial Management, Financial Services, Financial Solutions, Insurance, Investment, Money, Personal Finance, Retirement

New research from Prudential reveals working-age adults have lost sleep worrying about their pensions

According to new research from Prudential, more than one in three working-age adults have lost sleep worrying about their inability to save enough for retirement*, and the pressure on retirement saving is being increased by a combination of the housing market slowdown and rising household costs.

The Prudential research focusing on working adults provides a snapshot of ‘Burned Out Britain’ as concerns about being unable to save enough for a comfortable retirement drives people to work longer hours and increases stress levels. Around one in five working-age adults have worked longer hours or taken an extra job to increase their pension savings.

Prudential’s research shows just 27% of adults believe they are saving enough to maintain their current standard of living in retirement while 38% want to contribute more to pensions with half of them keen to contribute a lot more.

However financial pressures are making it difficult for them to put their money where their ambitions are – 51% blame higher costs of living while 18% of them don’t want to reduce their disposable income to ensure a more comfortable retirement.

The struggle to match pension ambitions with reality is also increasing the stress levels for these people with three-quarters expressing they were feeling increasingly anxious, and the current economic climate is piling on the pressure.

Julie Mulvanny, Prudential’s Head of Business Development for Pensions said: “The pensions crisis is becoming extremely personal when people are losing sleep over being unable to save enough for retirement.”

She continued, “When the pressures of the current short-term economic climate are added to the mix it is almost surprising that more of us are not lying awake at night worrying. It is clear however that many of us are waking up to the idea that we have to take responsibility for our own retirements and that is a long-term commitment.”

Around 9% said they have cut the amount they save into their pension due to rising living costs.

Up to one in 20 say the housing market slide has knocked their confidence in property as a pension while eight per cent are concentrating on building up short-term savings to tide them over in the event of any problems caused by the current economic climate.

Julie Mulvanny concluded, “It is encouraging that this message is getting through and there is plenty that we can all do to ensure we get the retirement we want and deserve. The UK needs a new approach to retirement income and planning for retirement. That should involve more than simply saving into a pension but should also involve looking at all sources of income.”

Disclaimer:
The information contained in Prudential UK‘s press releases is intended solely for journalists and should not be used by consumers to make financial decisions. Full consumer product information can be found at www.pru.co.uk.

 

About Prudential:
Established in 1848, today Prudential plc is an international financial services company with a product range which extends from personal banking, insurance, pensions and retail investments, to institutional fund management and property investments.

In the UK Prudential is a leading life and pensions provider with around seven million customers.

Via EPR Network
More Financial press releases