Working into old age

Three quarters of UK employees say they won’t be able to retire by the age of 65

Britain is growing old, and not just proverbially. As the population is set to increase, the proportion of the population aged 85 and over is projected to double over the next 25 years[1], and the number of those working for longer rises with it. Recent figures[2] reveal that nearly three quarters of UK employees say they won’t be able to retire by the age of 65.

Parents and grandparents delay passing on wealth

Growing uncertainty over the future cost of care the main concern

Increasingly, we read and hear about how the Bank of Mum and Dad is being stretched to the limit, as children are making increasing calls on its limited resources. However, research shows that a quarter (24%) of over-55s[1] are not planning to pass on any wealth in their lifetime over fears they could face crippling care costs in old age.

‘Presenteeism’ more of a problem than absenteeism

Nine out of ten employees continue to work even while being ill

Feeling ill? Well, staying at home would seem to be the sensible course of action. However, for many, going to work while sick has become the norm. Employers are seeing more staff turning up to work while ill, according to a new survey[1].

Money lessons

5 tips that add up to teaching your child about money matters

Understanding how money works is an essential life skill. Unfortunately, for a lot of people, these lessons come later than they should, and often as the result of something going terribly wrong.

Saving adequately for the future

How much should you try to save to have a comfortable retirement?

The good news is that the number of people saving enough for a comfortable retirement has hit its highest ever level, with almost three in five Britons (59%) now saving adequately for the future[1]. This is a significant improvement from the 55% proportion recorded 12 months ago, suggesting this April’s auto-enrolment step-up had an immediate positive impact on saving habits.

Tax relief and pensions

Annual and lifetime limits

When it comes to managing money, one of the things some people find most difficult to understand is the tax relief they receive on payments into their pension. Tax relief means some of your money that would have gone to the Government as tax goes into your pension instead. You can put as much as you want into your pension, but there are annual and lifetime limits on how much tax relief you get on your pension contributions.

Pension lifetime allowance

Putting a value on your pension savings in the future

The pension lifetime allowance is a limit on the value of payouts from your pension schemes – whether lump sums or retirement income – that can be made without triggering an extra tax charge. The lifetime allowance for most people is £1,055,000 in the tax year 2019/20.

State Pension

The foundation of most people’s retirement plans

Data for people qualifying for the full new State Pension following its introduction in April 2016 reveals that almost two in five pensioners (365,290 people, or 38% of claimants) receive less than £150 a week, while a further 314,290 people (33% of claimants) receive more than £150 a week[1].

Women’s State Pension age changes

Government’s bid to ensure ‘pension age equalisation’

On 3 October, campaigners lost a significant legal battle against the Government’s handling of the rise in women’s State Pension age. Up until 2010, women received their State Pensions at the age of 60, but that has been increasing since then.

Defined contribution pension schemes

Building up a pot of money to provide an income in retirement

With a defined contribution pension, you build up a pot of money that you can then use to provide an income in retirement. Unlike defined benefit schemes, which promise a specific income, the income you might get from a defined contribution scheme depends on factors including the amount you pay in, the fund’s investment performance and the choices you make at retirement.