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 ...

Five ways to fall in love with savings again

Saving is important. You’ve been told that a thousand times. You know, deep down, that you need to be saving to give yourself and your family a brighter, more prosperous future. But sometimes, the urge to spend it all now, without thinking about the future is just too tempting. Boosting your motivation to save 1. Set specific goals If you have a specific goal in mind; you probably think about reaching it every time you put money away. However, if you are saving for a broader goal, such as ‘The Future’ or ‘Retirement’, ...

Seven questions about giving money away in retirement, answered

Research from Prudential has shown that many retirees could be helping with the living costs of up to three generations. But how are they doing it and are there more efficient ways to help loved ones financially, when you leave working life behind? Let’s break it down… 1. How are other retirees spending their money? According to the ‘Class of 2018’ study, 31% of those planning to retire in 2018 will continue to give money to loved ones. The average retiree expects to give away a total of £4,300 each year, ...

‘Minimalist’, ‘Alternative’ or ‘Boomerang’: Which first-time buyer tribe do you belong in?

Last month, we explored the world of DINKYs, DINOs and SKIs; acronyms used to pigeonhole people with similar financial outlooks and priorities. This month, we have three new terms. Only this time, they’re descriptors of the three main types of first-time buyer in the modern market, at least in terms of the methods being used to gather the deposit for their first property. Focusing on deposits According to research from Santander, the average first-time buyer expects to need a deposit of approximately £20,478 toward their ...

How would living longer affect your finances?

Can you afford to live until you’re 100? If not, you need to start taking charge of your finances before it’s too late. Research from Retirement Advantage shows that, on average, people aged 55 to 64 believe their life expectancy to be 82 years. However, for men, the national life expectancy is 88, whilst the average woman is expected to live until she is 90. The same age group expect to retire just before their 65th birthday, which means that they are likely to be planning to financially support ...

DINKYs, DINOs and now SKIs; which group do you belong to?

As humans, we’ve been putting each other into boxes since the beginning of time. And, even though we live in an age when labels are falling out of favour, there is one area where we cannot escape being put into groups with similarly-minded people; Finance. There are a variety of acronyms for people at different stages of life and with varying financial priorities. But, where do you fit in and does that change how you should handle your money? SINK (single income no kids) SINKS are usually young adults, though it is of ...

For love or money: One fifth of Brits in a financially incompatible relationship

What makes a couple compatible? Factors such as shared hobbies and interests, complimentary personalities and trust are usually the first things to come to mind. What about money? Financial incompatibility may be one of the main reasons for the deterioration of relationships. According to research from Scottish Widows: A lack of shared goals has put a strain on 17% of relationships 17% wish they had discussed finances earlier in a relationship 20% think their partner could save more for the future 27% of people who don’t live together say ...

Five financial topics to talk to your kids about

Young adults are struggling to manage their money effectively. NatWest’s Financial Capability and Young Workers Report shows that 44% of young workers struggle to stay on top of their financial commitments. In addition, more than half of employers (55%) have experienced their younger employees facing financial difficulties and 45% have been approached by struggling young staff members. On average, 17% of UK adults have trouble sticking to a budget. But, among apprentices, who are usually young adults, this figure rises to almost a quarter (23%). The ...

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 ...

Do as I say, not as I do: Working mums lack financial protection

What happens if you are suddenly unable to provide for your family financially? Research from Scottish Widows shows that 60% of working mums have no Life insurance, while 87% are without Critical Illness Cover. That means that many mums risk leaving their household in financial difficulty, should they die or become seriously ill. How important are you? However, the impact of losing a mum’s income on a household is clear, with the loss of their income meaning that 61% of families would struggle to pay household bills. In addition, ...
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