Category: Pensions

Why opening a pension for a child before they start school can unlock powerful growth

13.04.2021
It really is never too soon to start investing through a pension. You may not be thinking about the retirement lifestyle that your children or grandchildren will enjoy quite yet, but opening a pension before they even start school can be worthwhile. If you’re looking for a way to help secure a child’s financial future, a pension can ensure their later life is far more comfortable and provide them with a valuable foundation for later...
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Pensions and divorce: What are your options?

09.03.2021
If you’re going through a divorce, your pension and retirement are likely the last things on your mind. And yet the decisions you make during the divorce process can have a lifelong impact. Despite pensions often being one of the largest assets we have, you may overlook them when dividing assets. Just 12% of people getting divorced considered pensions, according to Legal and General research. That’s far below the 50% that consider their family...
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Pension gap: How can women improve their security in retirement?

18.01.2021
We hear a lot about the gender pay gap, but one area that’s often overlooked is the knock-on effect this has for retirement savings. While progress has been made, on average, women are reaching retirement age with far less put away than their male counterparts. The £100,000 pension gap Eight years after auto-enrolment was introduced, the pension gap is closing. As a percentage of earnings, 59% of women are now saving adequately for their...
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The pension basics everyone needs to know

Most workers are now paying into a pension. But research shows that there is a worrying lack of understanding about how pensions work and why they’re a good option for saving for retirement. According to Royal London, seven in ten people admit they have little or no knowledge about pensions. Understanding your pension while you contribute can help you get the most out of it and ensure that you understand what it means for your retirement. If...
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How many pensions will you have at retirement?

02.12.2020
When we reach retirement age, we use a pension to create an income. But changes to working habits could make it far more complicated for today’s workers. As a result, actively managing pensions now is important. Employees today are likely to swap jobs frequently, to suit their lifestyle and career goals. It’s a trend that can help workers balance work and personal life, and further their career prospects. However, each position is likely to...
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Underestimating the amount you need in retirement: How a mid-life check can help

04.11.2020
Do you know how much you need to save into your pension for the retirement you want? Millions of pension savers are underestimating how much they’ll need once they give up work. It’s a miscalculation that could lead to a retirement that doesn’t meet expectations. Even if retirement seems a long way off, a pension health check can make sure you’re on track. It’s far easier to bridge a pension gap if you recognise the shortfall...
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5 steps the self-employed should take to prepare for retirement

02.10.2020
More people are becoming self-employed and it’s a step that’s been linked to improved wellbeing. But it can mean your financial security falls, particularly when looking ahead to retirement. For self-employed workers, it’s important to take steps that can ensure your financial security in the long term. According to research from the Institute of Fiscal Studies, wellbeing improves markedly upon entering self-employment. Job satisfaction was...
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Should you take a tax-free lump sum from your pension?

02.10.2020
Your 55th birthday, rising to 57 in 2028, often marks being able to access your pension for the first time. The opportunity to take a 25% lump sum tax-free is certainly attractive and can be too tempting to resist. But it’s not a decision to take lightly and it isn’t the right move for everyone. The ability to take a tax-free lump sum means that pension savings are becoming disconnected from retirement, research suggests. For many of us,...
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Pension age rises to 57: What does it mean?

02.10.2020
From 2028, you won’t be able to access your Personal Pension until the age of 57. The government’s decision could affect your retirement plans and it’s important to review what it means for your future. The government previously stated it intended to increase the age people could access their Personal Pensions, currently set at 55. However, it didn’t put legislation in place, leading to speculation that the change wouldn’t go ahead. The...
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5 things to check before cashing in a Final Salary pension

08.09.2020
If you’re fortunate enough to have a Final Salary pension, you have options for creating a retirement income that suits your goals. But, if you’re tempted to transfer out of a scheme, it’s essential you understand what you’d be giving up first. Figures published in the Telegraph show cash transfer values for retirees leaving a Final Salary pension scheme reached record highs this summer. The estimated cash transfer value of a 64-year-old...
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