People in the UK that Intend to retire during 2008 will probably confront their later years earning a lower-than-average yearly income, a new study has shown. Research carried out by Prudential found that adults retiring this year will reside off an average income of 18,663 annually, which are 5,000 less the average income for a functioning adult. Women are likely to have to live on less annually than men, the findings reveal, with a mean income of 11,291 compared to the male average of 20,790. Some 46 percent of the year is retirees surveyed, however, said they expected to have a comfortable retirement financed by work and state pensions and savings. For 36 percent these financial provisions were not regarded as sufficient to retire in comfort, while 18 percent were not sure.
Gary Shaughnessy from Prudential remarked that the passing of many final salary pension schemes would imply retirement incomes were reduced and added that it was worrying that only 24 percent of those polled had sought financial information. Even those prospective Retirees who have made plans for the future might be missing out on some premier income plan review benefits, according to another study. Research from Lincoln Financial Group revealed that 1.8 million individuals in the United Kingdom have staked their future earnings on the stock exchange, as opposed to in long-term pensions. Some 26 percent of people aged over 55 discovered from the survey to have invested in stocks see such issues as an alternative to a pension and 21 percent would up their investment in the face of recent financial instability. Simon Connor in the company said that the tax benefits provided by long-term pensions saving alone could make this choice rewarding.
The Prudential report also emphasized the importance of seeking advice when making financial plans for the future. Inflation increases, in addition to the rising life expectancy of people in the United Kingdom, mean that the pension supply individuals do make – if in pensions goods, savings or investments – may want to last quite a long time. Mr. Shaughnessy pointed out the possible tax breaks available which are often not utilized by Investors, and added that diversifying savings across pensions, mortgages and investments with the assistance of financial information can help people get the most from the cash over the long-term. Finally, the account also has an optional are ward credit card that earns a stage for each pound spent on it. The points can then be exchanged for gifts, but having taken a look what was on offer it did not look like a fantastic deal. I decided to keep with my 4 Cash back Capital One Card instead. Note The Capital One card is no longer available however the Amex Platinum Card is an excellent alternative.