WE now have more information, more choices, and more responsibility for our retirement savings. But will the future we want be the future we are able to get?
The Retirement Living Standards, launched by the Pensions and Lifetime Savings Association (PLSA), has been developed to help people picture what kind of lifestyle they could have in the future.
Pitched at three levels: minimum, moderate and comfortable, the standards have been designed to act as a practical and meaningful starting point for anyone who is unsure about how much to put away.
By giving savers a general figure that they can understand, the hope is that savers can then start to develop their own personal targets based on their individual circumstances and aspirations.
Given that the average amount sitting in pension pots after a lifetime of saving is £55,900*, many retirees may be shocked to learn how little income their savings will provide.
“There’s still a long way to go in terms of raising awareness,” says Tony Clark, Head of Retirement Marketing at St. James’s Place. “It’s vital to realise that building a decent retirement pot means being engaged with the process early on.
“The good news is that through a combination of the full State Pension and auto-enrolment in a workplace pension, the minimum level should be achievable for most people.
“But current minimum contribution levels are not enough to get average savers over the line from a minimum to a moderate lifestyle standard. That’s why it’s vital that they are provided with the education, tools and advice to make better and more proactive investment decisions during their working lives,” adds Clark.
A financial adviser will give you an idea of what your retirement income will be, based on how much you’re saving.
The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.
* Retirement Living Standards, Pensions and Lifetime Savings Association, 2021
Thomas Reynolds Financial Planning offer no obligation pension reviews and have availability this Autumn.
Thomas Reynolds Financial Planning are based in Melksham and provide a holistic approach to financial advice, helping clients from all backgrounds to create, review and successfully achieve their financial goals.
Thomas Reynolds Dip PFS Cert CII (MP). Associate Practice of St. James’s Place Wealth Management. Unit G1, Avonside Enterprise Park, New Broughton Road, Melksham, Wiltshire. SN12 8BT. Mobile: 07795 373866. Office: 01225 984882. Website: www.thomasreynoldsfp.co.uk
Thomas Reynolds Financial Planning is an Appointed Representative of and represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the group’s wealth management products and services, more details of which are set out on the group’s website www.sjp.co.uk/products. The ‘St. James’s Place Partnership’ and the titles ‘Partner’ and ‘Partner Practice’ are marketing terms used to describe St. James’s Place representatives.
