The Basic State Pension is £87 per week. What more do you need to know?
No seriously, how much more consideration to you need to give the issue? The country that loves you and has nurtured you throughout your life and allowed you to pay tax on your income, tax on your savings, tax every time you have a pint, drive a car, fly on a plane, etc etc will reward all your efforts with the Princely sum of £87 per week. Yes there are other pension related benefits and social security benefits but when it comes down to the State keeping you, it certainly won’t be in style. Also benefits and the qualification to claim them are changing all the time, who’s to say they will be still there when you retire?
The age for claiming State Pensions is increasing, it will gradually rise to age 65 for women from 2010 and slowly increase to age 68 for everyone thereafter. Other countries have raised the minimum State Pension age to 70 and I don’t imagine it will be long before the UK follows suit. This is a direct result us all living longer and unless we suddenly start dying young, which is not really a vote winner this upward trend is going to continue.
Everyone agrees that our current system of State Pension provision is unsustainable and we all know we have to make provision for ourselves yet understandably there is a general reluctance to commit our hard earned cash to a Pension and who can blame us? If you get to the end of the month and are lucky enough to have a spare few quid, what would you rather do; a) Pay it off your next holiday. b) Buy some new clothes c) have a night out or d) Save for your retirement?
Of course the sensible answer is ‘d’ but we can’t all go through life being sensible. However at some point the bullet will have to be bitten and reality faced that if you do want to spend 20-30 years living on £80 a week you are going to have to take action.
Like many things it’s not that bad once you start and if you make a regular commitment the pain will diminish as time passes and you begin to get some pleasure in watching your retirement fund grow and realize it wasn’t that bad after all.
You might say is it really worth the bother at my age, well consider the 3 factors below;
- Where else can you make an instant 20% on your money because of the tax relief?
- However small your Pension may be you will probably find something to spend it on
- I have yet to meet anyone with the complaint that they have too much money in retirement
If you would like more information on saving for retirement please contact us.