Will you be able to climb the ‘pension mountain’?

How do you feel about climbing mountains? What if the mountain in question is hypothetical and merely represents the amount of money you need to save to have a comfortable retirement? It might still sound daunting to some but saving enough doesn’t have to be an uphill struggle. Figures from Royal London show that since 2002, the amount needed to support a comfortable retirement has grown from £150,000 to £260,000. Further still, today’s young adults are likely to need to have saved almost £200,000 more than that, especially if ...

Stay-at-home mums missing out on pension equality

According to analysis by Royal London, as many as 50,000 stay-at-home mothers could be missing out on thousands in retirement income, due to changes made to the way Child Benefits work five years ago. What is happening? The change has meant that, in couples where one person earns over £50,000, the other is ineligible for Child Benefits, even if they are a stay-at-home parent. However, for stay-at-home parents, there’s more to Child Benefits than just money; they are also entitled to National Insurance credits, which are required to claim ...

Q&A – What does the pension contribution increase mean for you?

 What is the contributions increase? Workplace Pensions are a form of Defined Contribution scheme. This means that the percentage of your earnings that both you and your employer add to your pension fund is unlikely to fluctuate from month to month. Until April, the minimum contributions for both you and your employer were 1% of your qualifying earnings. This has now increased to 2% for employers and 3% for you. A further rise is due in April 2019 which will see employers contribute 3% and your share will hit 5%. Who is ...

The self-employed pension gap: All work and no retirement savings

The gender pensions gap could be worse than first thought. According to Fidelity, Women earn 10% less than men before having children, but once they become parents, that gap widens to 30%. As a result, the average 60-year-old woman’s pension fund amounts to just half of that of a man at the same age. (Source: Aegon) And for self-employed women, the story takes an even worse turn, as 32% are making no effort to save toward retirement at all. What is to blame? There are three main ...