Money Matters

Country Child spoke to Peter Harding Wealth Management for some tips on financing for the elderly members in your family.

Just because saving for retirement is difficult, it doesn’t mean you should give up, because the good news is that the government will help boost your pension contributions.
For some, the question is not how to retire successfully, but how to retire at all, given that there may be precious little in the way of a state safety net to fall back on. Research from the Financial Conduct Authority reveals that around 15 million individuals are not saving anything towards their retirement and will have to rely entirely on the State Pension in their later years.1
Of particular concern is the group of pre-retirees aged 55–64, only half of whom have given thought to how they will manage in retirement; and only a quarter know how much they have in their pension pot.2 These people may only have a few working years left to build their nest egg.
Why do so many people fail to plan their retirement? This could be partly due to massively underestimating the amount of money they need to save. Only 7% of people aged 55–64 today expect to live to 90, but research indicates that half of them can expect to live that long.3 The obvious implication is that many retirement pots will run out too soon.
The solution is to plan. You have to ask yourself: how much will I need, and how much can I afford to put away? Then you need to factor in any other sources of retirement income and you can see the size of the gap you are trying to fill. Obviously, the younger you are, the longer the investment time horizon and the most you will have to gain when thinking ahead.
It’s vital that savers know and understand all their options for using their pension; but also that they make the most of the current tax breaks while building one, so taking advice is crucial to check your plans are on track.

To receive a complimentary guide covering wealth management, retirement planning or Inheritance Tax planning, contact Peter Harding Wealth Management peterhardingwm.co.uk

1,2, Financial Conduct Authority, Financial Lives Survey 2017
3, BlackRock, Global Investor Pulse Survey 2017