pensions Archives - WRLO Accountants

Savers dangerously underestimating minimum cost of retirement

WRLO Accountants — Fri, 05 Jul 2024 16:58:01 +0000

UK savers are dangerously underestimating the minimum amount needed to retire, according to research from pension provider PensionBee. A survey of 1,000 working-age UK adults showed that 23% were unsure of the total pension pot size needed to achieve the retirement income they desire. Pension Bee said that, according to the Pensions and Lifetime Savings Association’s (PLSA) Retirement Living Standards, a pension pot of £150,000 would only fund an individual’s minimum retirement standard for ten years. Pension Bee suggested that working-age adults could be underestimating the true cost of retirement. 49% of those polled estimated that they would require a pension pot of around £250,000 or more. However, Pension Bee found that there was a lack of clear consensus in regard to desired annual income in retirement. Becky O’Connor, Director of Public Affairs at Pension Bee, said: ‘It’s hard to plan for retirement without an idea of how much you might need, yet most Brits seem to be unaware of – or worse, dangerously underestimate – the true cost of retirement. ‘A good pension pot is one that can provide enough money for the duration of retirement. As this exact amount will vary based on individual circumstances, pension calculators can […]

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Retirees report £119,000 shortfall in pension savings

WRLO Accountants — Thu, 06 Jun 2024 19:44:01 +0000

UK adults face a significant shortfall in their pension savings at retirement compared to what they wanted to retire on, according to research from Standard Life. Standard Life’s Retirement Voice Report found that, on average, retirees had hoped to build up a pension pot of £250,000. However, the average amount that they accumulated by retirement was £131,000 – leaving a £119,000 shortfall. Based on current annuity rates, a pot of £250,000 could lead to an income of £1,007 monthly, or £12,091 a year, assuming a retirement age of 66. A pot of £131,000 could result in a monthly income of £527 in retirement, or £6,332 yearly – £480 a month, or £5,759 a year less. However, even the not insignificant £250,000 pot falls short of a ‘moderate’ standard’ of living in retirement, according to the Pensions and Lifetime Savings Association. Dean Butler, Managing Director for Retail Direct at Standard Life, said: ‘It can be hard to work out how much you need to save to achieve your desired standard of living in retirement, particularly earlier on in your career. It’s even harder to stick to it, as everyday expenses and those one-off costs that come up in life constantly threaten […]

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HMRC launches online voluntary NICs payment service

WRLO Accountants — Fri, 03 May 2024 09:19:46 +0000

HMRC has launched a new online voluntary NICs payment service. The government says the new service will make it easier for customers to check for and fill any gaps in their National Insurance record to help increase their State Pension. It also said that the new Check your State Pension service has been enhanced to include an end-to-end digital solution. The service shows customers by how much their State Pension could increase and outlines the voluntary NICs they would need to pay to achieve this. The service also allows people under the State Pension age to view gaps in their National Insurance record and pay voluntary contributions to fill the gaps. Minister for Pensions, Paul Maynard, said: ‘The State Pension is the foundation of income in retirement, which is why we have introduced this new online tool to help simplify boosting it for those who are able to. ‘I would encourage everyone to check their State Pension forecast and to take a look at how they could improve their State Pension award with only a few simple clicks.’ Internet link: GOV.UK

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