Important pension updates
It’s very important that you keep up to date with the latest pensions news.
To help, we’ve summarised some of the most important changes affecting pensions here. Please take some time to read about the changes and think about how they might affect you and your pension. If you are unsure or would like additional information please call us on 0131 549 9772 or request a call back.
It can be difficult to imagine your future, and work out what income you may need to live on and whether you can afford to retire.
That’s why the Pensions and Lifetime Savings Association have developed Retirement Living Standards, to help you picture what kind of lifestyle you could have in retirement.
This is based on independent research by Loughborough University, and shows, roughly speaking, a single person will need about £10,900 a year to achieve the minimum living standard, £20,800 a year for moderate, and £33,600 a year for comfortable. For couples, it's £16,700, £30,600 and £49,700 respectively.
The standards show you what life in retirement can look like at three different levels (minimum, moderate and comfortable), and what a range of common goods and services would cost for each level. Explore here to picture what life in retirement could look like for you.
Remember, these figures aren’t set in stone. Use them as a guide to help you work out what you may need for your own retirement. Remember to consider what you may get from your private and state pension versus costs in retirement.
Our website also has more information about living costs, inflation and working in retirement.
The importance of planning for retirement
It’s really important to understand and review your options. From the age of 55 you’ll be able to take responsibility for the money you’ve saved and access your pension pot in many different ways. You might want to: take some or all of it as cash; have a guaranteed income for life by buying an annuity; take a flexible income or a series of lump sums; or postpone your decision until later. If you’re considering postponing, please be aware that your policy may have valuable guarantees that apply only on your current chosen retirement date.
It can be quite confusing, so to help assist you in your retirement planning we’ve provided you with the information and tools to help you compare and choose your pension options.
You can use the ‘Quick Links’:
- to help you plan for retirement
- to view the latest research, insights and editorial opinion from our experts
- to get to grips with the numbers and figures why not take a look at our range of tools and calculators designed to help you.
Pensions are a long-term investment. The retirement benefits you receive from your pension plan will depend on a number of factors including the value of your plan when you decide to take your benefits which isn’t guaranteed, and can go down as well as up. The value of your plan could fall below the amount(s) paid in.