A recent survey has reported that around a third of women do not have a private pension plan, compared to a sixth of men. The survey undertaken by online investment service provider Willis Owen, which polled 1,070 UK adults, showed of the women without a pension, 41% had no intention of starting one, compared to 34% of men. The survey also found that 17% of women do not intend to start paying into a pension until they are at least 40, and nearly one in ten (9%) do not anticipate starting to pay into one until they are 50. The research also showed of the women without pension savings, when it came to paying for their retirement, 65% cent said they will be reliant on the state pension. Some 34% of the female respondents will rely on other savings while 21% will be dependent on their partners’ pensions, savings and investments. Nearly one in five (17%) claimed they won’t be able to stop working until later in life. Further research done by Willis Owen revealed that many individuals had cancelled payments into schemes. One in three people claimed to have stopped paying into a pension scheme over the past 12 months, the main reason behind this, was that they could no longer afford it. While others confirmed they would rather use the money for other purposes, or prefer to fund their finances to help them onto the property ladder.
Did you know that, as of the 5 April, auto-enrolment minimum pension contributions increased from 5% to 8%, with the employer paying 3%. When contributing into personal pensions and some workplace pension schemes your pension provider can claim back income tax (from the Government) at the current 25% basic rate of tax and add it to your pension pot. This means for every £100 you contribute; you add £125 to your pension pot, gross contributions from salary can also save National Insurance. Higher and additional rate tax payers may claim further relief through their personal tax returns.
So, don’t miss out on this opportunity to receive free contributions from the Government!
How we can help?
It is never too late or too early to start contributing towards retirement, of course the earlier you start the more you will have in retirement. However, if you do start saving later you can still achieve your goals.
Please do contact the office to arrange a meeting or telephone appointment with one of our highly qualified advisers who will be more than happy to discuss your retirement options, retirement goals or address any other financial queries you may have. The initial meeting is offered at our cost.