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AisaDirect Ltd, an Independent Financial Adviser authorised and regulated by the Financial Services Authority in the UK only.
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This website contains information which may or may not be applicableto your own situation and circumstances.
Any information or advice on this site does not constitute a personal recommendation. If you have any doubts as to whether a product or service is suitable for you, please seek independent advice.
Getting to Retirement
Before we reach retirement, we look at the best ways of funding what is probably 20-30 years of none-full time work. To ignore pensions is to ignore the most efficient way of funding this retirement from a tax perspective.
The problem has always been lack of continuity from regulators, advisers and you! Often, old scheme are discarded and ignored as we move from employer related pensions or personal pensions; we stop funding them when we change employment and FORGET ABOUT THEM.
This means that there are two aspects that we should consider. The first are Pension Transfers to enable you to unlock your existing pensions and enable them to achieve higher growth for you.
The second aspect is how much we are paying into our pensions today. Research continually indicates that people are not contributing enough to a pension to have an adequate income in retirement.
Evidence
The Association of Consulting Actuaries (ACA) states that someone in their mid-thirties would have to save between 15 per cent and 20 per cent of their annual salary into a money purchase pension to get a retirement income of around 60 per cent of their salary. This figure rises to between 17 per cent and 24 per cent for people aged 40 and 23 per cent to 30 per cent for those who are 45 when they take out a scheme.
But in a survey of pension schemes at firms employing fewer than 250 people, the group found that the average combined contribution of both staff and employers was less than 9 per cent of annual salary. ACA said: "This contribution gap points to many pensions falling far short of expectations in the years ahead."
To quickly assess your position yourself, click here.
For a full review of your pension situation please select the relevant option on the left hand side (Best Buy Lists, Ask an Expert, Product Sales, Financial Guidance)