IFA Compare Admin
UK Pension Problem – What can you do?
A recent study carried out by AVIVA has confirmed that the United Kingdom has a Pension shortfall of approximately £318 Billion, the biggest Pension shortfall in Europe
Worryingly, those wanting to maintain a financially comfortable lifestyle once retired would need to plough an additional £10,000 per year into their Pension in order to fill the gap, which for the vast majority of people is simply impossible.
Perhaps even more worryingly a recent survey carried out by IFA Compare suggests that approximately 37% of people have no idea what level of income they will require upon retirement or what level of income they are actually due to receive.
Retirement is a subject that some people give little thought to until later on in life. Unfortunately, at this stage it is simply too late to make up the difference between the retirement income they are due to receive and the retirement income they really need.
The survey by IFA Compare indicates very clearly that financial hardship after retirement could, in most cases, be avoided by careful retirement planning earlier in life.
If you want to take control of your retirement by planning now, you can start by considering the costs you may have to meet once you have retired.
By creating a retirement budget now, you can ascertain how much retirement income you may require. Once you have an idea of the level of income you will need, you can consider how much you will need to save/invest per month or year in order to generate this level of regular income once you have retired.
To help you get started, here is a list of the types of cost you need to consider:
Food
Utility Bills - water, electricity and Gas
Council Tax
Transport Costs - car, petrol, car tax
Repairs to your Home
Clothes
Leisure Activities –Hobbies, Meals out, cinema, holidays, visiting friends & Family
If you are unsure as to whether you are investing enough for your retirement then you need to find out, it is exceptionally important to be certain.
Ask yourself the following questions:
You could survive for years after retirement, will your income last?
Will your income cover all of your bills?
Will you have enough income to enjoy your retirement?
If the answer to any of these questions is either no or I’m not sure, then perhaps you need to take action. Uncertainty when it comes to retirement income can and does lead to financial misery.
Tens of Millions of people in the UK have a shortfall in the income they are due to receive once they retire, are you certain you are not one of them?
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