LGW Hub
Financial services
True bearing
First it was Covid, and now it’s rising inflation, energy costs and interest rates. The cost of living crisis is affecting people across the country – but is it affecting pension plans?
A recent investigation by Royal London says that may well be the case, with 58% of over-55s now planning to work in some way in retirement. While some don’t even plan or feel able to retire at all, the retirement landscape is changing. However, if we do not want to work well in old age and illness, long-term planning is necessary.
According to the Pensions and Lifetime Savings Association standard of living in retirement, a single person will need £10,900 a year for a “minimum” level of pension, £20,800 for a “moderate” pension and £33,600 a year for a “comfortable” pension. For couples, those figures are £16,700, £30,600 and £49,700 respectively.
With State Annual Full Pension at £9627.80 from 2022/2023, a single person already has a shortfall of over £1,200 just to reach the “minimum” retirement living standard with no other pension scheme or savings in place. If they aim to be ‘comfortable’ the shortfall is over £7,000.
With research showing that someone who takes financial advice could be 39% better off* in retirement than someone who doesn’t, those worried about their retirement pension should talk to a financial planner independent. At True Bearing we have 25 highly experienced financial planners in the North West and beyond, so there will be a local for you.
If you would like to speak to one of our independent financial planners about your pension or any other aspect of financial planning, please Contact us or call 01257 260011.
*Research taken from 2017 market research by Dunstan Thomas