First it was Covid, and now it’s rising inflation, energy costs and interest rates. The cost-of-living crisis is affecting people up and down the country - but is it affecting retirement plans?
A recent survey by Royal London indicates that it might well be, with 58% of over 55’s now considering working in some way during their retirement. With some not even be planning or feeling that they are able to retire at all, the retirement landscape is changing. However, if we are not wanting to work well into old age and ill health, then forward planning is required.
According to the Pensions and Lifetime Savings Association's Retirement Living Standards, a single person will need £10,900 a year for a ‘minimum' level of retirement, £20,800 for a ‘moderate' retirement and £33,600 per year to be ‘comfortable'. For couples, those figures are £16,700, £30,600 and £49,700 respectively.
With the yearly full state pension at £9627.80 from 2022/2023, a single person already has a shortfall of over £1,200 just to reach the ‘minimum’ level of retirement living standards with no other pension provision or savings in place. If they are aiming to be ‘comfortable’ then the shortfall is over £7,000.
With research showing that someone who takes financial advice could be 39% better off* in retirement than someone who doesn’t, those worried about their pension provision in retirement should speak to an Independent Financial Planner. Here at True Bearing, we have 25 highly experienced financial planners around the North West and beyond, so there will be one local to you.
If you would like to speak to one of our Independent Financial Planners about your pension, or any other aspect of financial planning then please contact us or call 01257 260011.
* Research taken from a market survey carried out in 2017 by Dunstan Thomas