Get in touch with for finance MOT for retirees

26/6/14

By Will Roberts

Older people need regular “economic MOTs” to support them navigate through decades of retirement, according to a report from Age UK.

The report argues that frequent monetary check-ups are critical to aid folks to cope financially with retirement periods which can now final for around 30 to 40 years.

It says that rather than creating one particular single “program” for retirement, retirees’; economic arranging need to concentrate on creating up resilience to shocks such as ill wellness, care needs or the death of a companion.

The report, titled Financial Resilience in Later Life, is the culmination of Age UK’;s Financial Solutions Commission, a series of 3 summits involving market leaders, Government, customer advocates and older folks.

New pension rules from next April

It comes as the government prepares to relax rules surrounding pension pots which will give folks considerably much more freedom to take their cash how they wish, rather than feeling forced to use the income to acquire a lifetime revenue called an annuity.

From April subsequent year, folks aged more than 55 with a defined contribution (DC) pension pot will be capable to take it how they want, subject to their marginal rate of revenue tax.

At present, folks are charged 55% tax if they want to withdraw the whole pot.

Age UK also stated it also fears that there is most likely to be a increasing threat coming from scams and bogus investment schemes following the adjustments.

Tom Wright, Age UK group chief executive and co-chairman of the Financial Solutions Commission, said, “With retirement now often lasting 30 or 40 years – a third of your life – we’;re in vital need to have of a radical new method to producing later life financially safe and comfortable.

‘Financial MOTs’; required all through retirement

“The idea of generating a single set of retirement plans at pension age is not fit for goal.

“We believe a series of monetary MOTs at significant points all through retirement, together with a robust state and private pensions program, is the genuine way to support individuals make ends meet and reside comfortably.

“We hope the monetary solutions sector, regulators and government who worked with us for the duration of the Commission will now act on the blueprint we’;ve laid out as a outcome of our discussions so that men and women in Britain can feel financially ready for and confident about their later lives.”

Pensions Minister Steve Webb mentioned: “I welcome Age UK’;s part in spearheading the debate on what far more we can do.

“The Pensions Bill which will be introduced into Parliament shortly will be a automobile for the government’;s ongoing pensions revolution, and I appear forward to driving through Parliament a quantity of further measures which will reflect the realities of our ageing society.”

Get in touch with for finance MOT for retirees