Why it’s important to prepare younger generations for retirement

We hope you feel confident in your financial security, including the provisions you’ve made for retirement. But have you ever spoken to your children or grandchildren about their pension or retirement plans? Research suggests their expectations could be far higher than the reality. According to a report from Scottish Widows, the average worker in their 20s faces an annual shortfall in retirement income amounting to £6,500. It’s a sum that could have a significant impact on financial security or affect retirement plans. The gap will be even wider ...

How far does the State Pension go?

For many people, the State Pension is an important part of creating a retirement income. Whilst you are hopefully taking other steps to boost this income, such as contributing to a Workplace Pension or investing for the long term, understanding what the State Pension provides is crucial. As the State Pension provides a reliable income, it can be used to provide some stability to your income. This is particularly important if you’re saving into a Defined Contribution pension and choose to take an income flexibly. It may not make up the bulk ...

How can you stop your pension running out?

Do you know how much the current State Pension is? It must be enough to live on, surely? It is often reported that people are ill-prepared for their retirement, and for good reason. Research from Scottish Widows suggests that nearly one in five of us aren’t saving enough into a pension. Many are increasingly relying on the State Pension to fund their retirement, but this is a risky plan. It was announced in July that the State Pension Age will increase seven years early, affecting over seven million people. Taking control of your ...

Should you use your pension to pay off your mortgage?

Close your eyes and imagine receiving a large amount of money. What do you see? What does it buy? The exact amount will dictate what is possible, of course. But, many would pay their mortgage off before dreaming of shiny new cars, skiing holidays, or for the more frugal, maybe a new… toaster? Whatever the money will be spent on, repaying your mortgage is often the first thing on people’s minds. And for good reason; those monthly mortgage payments are often the main reason people can’t give up work early (or at all, ...