Recently the Guardian published an article stating the average 35-year-old will have to save £660,000 into a pension plan if they have any hope of matching the standard of living enjoyed by today’s pensioners. That’s over £20,000 a year.
Final salary pensions benefited by many pensioners means that those in retirement or retiring now will often achieve a greater standard of living than those retiring 40 years in the future.
Most 35 year olds have saved only £14,000 towards their retirement* and excuses such as lack of money and saving too early were blamed for lack of savings.
Workplace pensions will go a small way to bridge this gap
The Government is trying to address these shortfall issues by introducing the workplace pension for all companies in the UK who have employees. However, it seems that the employer and employee contribution levels are too low to provide security in retirement.
But it is a step forward and the UK has to begin somewhere to ensure that those who retire have financial support to maintain their standard of living.
So what can be done?
Auto-enrolment is a start and it is compulsory for companies with employees. This is the very least that employers and employees should be doing. By signing into a workplace pension it means that you will have some financial income when you retire.
Workplace pensions – are you in?
If you are an employer, are you underway with the auto-enrolment process? If not, you should be. The government is imposing fines for companies who miss staging dates and deadlines. If you are an employee, has your company enrolled you in a workplace pension?
We can help you with your workplace pension
If you need help, then give one of the Enrol My Staff team a call on 01329 559 130 or email email@example.com. We are experts in pensions and financial management and will run you through the process, support you and provide impartial advice.
Source: To read more about this article, please visit the Guardian website