Five Reasons to Get Your Saving Plans into Gear
1. It Could Last Longer than You Think
Put simply, we could spend more than one-third of our life in retirement. While this is something to celebrate, without a long term financial plan in place we run the risk of outliving our savings.
2. It’s a struggle to get by on just the State Pension
The current State Pension system has changed enormously since 1909 and will do so for many more years to come. Whatever its future, it's clear that the population as a whole in the UK may not be able to rely on it forever. It leaves us all with a clear call to action: we must take personal responsibility for our retirement finances because there may be precious little in the way of a state safety net to fall back on.
3. People Overestimate How Far Their Savings Will Stretch
When it comes to hard numbers, there seems to be little grip on reality about how much retirement income a savings pot can translate into when the need arises. Research suggests (1) that you’ll need to save at least £525,000 for this income, even including the State Pension.
Given increasing life expectancy, it’s imperative that we save more to help fund a comfortable old age. Nevertheless, more than half of people in the UK either aren’t saving at all for their retirement, or aren’t saving nearly enough to give them the standard of living they hope for.
If you fall into either of these categories you have three choices: adjust your income expectations, start saving more, or retire later.
4. It Can Be Hard to Catch Up
A common mistake is to try and play catch up later on in life. This is because the longer you delay saving, the less time you have to benefit from investment growth.
5. The Burden of Saving Has Shifted
In the face of rising life expectancy and spiralling costs, the trend has been for employers to wind up their defined benefit (final salary) schemes in favour of less costly, and in many cases, less favourable defined contribution counterparts.
If you would like to find out further information please contact one of Eight Wealth Management’s local offices to find out more.
https://eightwealthmanagement.co.uk/
The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.
Eight Wealth Management Ltd represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the Group’s wealth management products and services, more details of which are set out on the Group’s website at www.sjp.co.uk/products.
(1) BlackRock, Investor Pulse Survey, 2017