With statistics showing that few young women are saving for retirement in a meaningful way, it’s time for women to become financially informed in order to live the retirement lifestyle they want. As well, those with a plan in place should seek a pension review in order to assure their current plan will work well with the new government pension scheme.
Poverty is a definite possibility for women in the future, unless they become knowledgeable in the consequences of having not retirement plan in place. Even workplace pensions amongst women have fallen to record lows. In the previous four years, official figures point out that the 22 to 29 demographic are declining rapidly in enrolling in workplace pension plans.
Young people in the UK need to start today to plan for a successful retirement and part of that plan means not solely relying on the government pension. The experts agree, it’s crucial that they look at other ways to save for retirement and get into a solid habit of putting money aside regularly. If young women in the UK do not actively save for retirement, they face the prospect of poverty in their later years. Today, it’s estimated that over 8 million workers have no significant plan for their retirement. Will they be able to provide for themselves on a yearly pension of £5,078?
Workers under 30 years have shown a significant reluctance toward using their workplace pension scheme. These plans have some of the most generous pay-outs and yet people still reject them. With the current economic conditions, pension planning for many is simply not a priority. They’re struggling to survive the current economic situation and feel that when things improve in the future, they’ll look at their future retirement plans. Many are working hard to simply pay down debts, pay for rent and other necessities.
The government recognises that something must be done to raise awareness amongst young people to start planning for retirement. As well, those who currently do have a retirement plan should seek out a pension review regularly in order to assure it will meet their future needs.
The recent housing disaster has proven that one cannot think in terms of a home being their pension plan for the future. More importantly, women cannot rely on a home to provide for their old age. It’s important for women to have their own investments and to consult frequently with an advisor to ensure their pension plan for the future is on the right track. In fact, all people should constantly have a pension review of their investments in order to ensure their future is secure.
The public needs to be aware, that even with the government pension and a workplace pension, there is still a need to save separately if they want to live comfortably. The minimum savings is unlikely to be enough to provide for an active and secure lifestyle that the future will offer. People today are starting to become aware that as they age, they’re much more likely to live longer and that will require a more robust pension plan. Changing the current culture so that young people become educated on the value of having a pension is an absolute necessity.
How’s Your Pension Plan Doing?
With the new changes being implemented in 2017, any person with a private pension plan should talk with their financial advisor and undertake a pension review with an eye to the consequences of the new scheme and how it will affect them over the long term. Since your pension will be your most important form of income when you retire, it’s important to ensure the plan is healthy and going in the direction you need. With the move toward financial advisors charging a flat fee, such advice will now be more affordable for the public, and it’s hoped that advisors will play a significant role in helping people to prepare for the future.
Kay Brown is a blogger who is always researching the latest changes in financial matters such as pension schemes, undergoing a pension review and retirement funds. He writes to advise all UK residents preparing for their retirement future, regardless of their age.