Automatic Enrolment: Why it probably won’t give you enough income to retire

My FutureThere’s no doubt that, on the face of it, Automatic Enrolment has been a success, with six million new workers now contributing to a pension and 95% of employers complying with the new rules (Source: BBC, July 2016). However, scratch below the surface and the picture isn’t quite as rosy. A number of factors affect the size of your pension pot, and consequently the income it will provide. These include: The amount you contribute The length of time you pay in for The amount taken out in charges and fees The ...

Auto Enrolment: Millions more now in workplace pensions

Automatic Enrolment_newNew figures have shown that more than six million employees have now been automatically enrolled into workplace pensions. Furthermore, in boost to the scheme, 95% of employers are complying with the new rules. But despite this, there are still concerns that workers are not paying enough into their pensions. Automatic Enrolment is being phased in with smaller employers now needing to comply with the rules. It is widely thought that these micro employers, including those people, who, for example, employ a part-time gardener or nanny, will find it hardest to comply with the ...

Sharp rise in retired renters

The difficulties younger people face when trying to get onto the housing ladder are well documented. Rising house prices, and tighter mortgage lending criteria, have combined to push the average age of a first time buyer well past 30, consequently younger people are staying in the rented sector for longer. However, the rise in older renters has, so far, been less well covered by the financial press, but new research by the National Landlords Association (NLA) has revealed some surprising results. According to the research: The number of retirees living in private rented ...

Do you have unrealistic retirement expectations?

Performance evaluation paper with smileysPredicting your income in retirement is tricky at the best of times, even with the help of a financial adviser it can be fraught with difficulties. The results of research conducted by Consumer Intelligence on behalf of Investec Wealth & Investment are therefore hardly surprising. Unrealistic retirement expectations The study found that higher earners, with incomes of over £50,000, expect their private pension to provide an income in retirement equivalent to 44% of their pre-retirement salary. However, the research also showed that this expectation is unrealistic with the actual income ...