Be Mindful of your Money this Pension Awareness Day
Written by Tom James on 12 September 2019
What is Pension Awareness Day?Pension Awareness Day is an event that aims to promote the importance of saving for the future. Launched in 2014 by Pension Geeks, the initiative offers online and face-to-face advice for people to find out more about pensions and to help them prepare for their future.
When is Pension Awareness Day?Pension Awareness Day is an annual event and this year it takes place on Sunday 15th September 2019.
Why do people need to prepare for their pension?PayPlan has looked into the struggles its clients are facing in the lead up to retirement. In a survey of over 3,000 participants approaching retirement, PayPlan found that many over 55’s had fallen into a financial trap whereby they weren’t prepared for their retirement.
Over 34% of respondents said they waited between 1-2 years before seeking help. By this stage, your financial situation could get considerably worse and impact the total amount you have to retire with.
Furthermore, PayPlan also found that of those surveyed that had retired, 68% didn’t feel financially comfortable in their retirement. For those that were yet to retire, just 10% planned to do so on time.
These figures show that planning your pension early (as well as keeping a close eye on your savings) may help with unexpected costs in later life.
Commenting on the results of the survey, Rachel Duffey, CEO of PayPlan, said:
“We talk to many elderly clients whose options are extremely limited because they’re no longer working and have to live on a restricted income. Although we can usually help make their debts affordable, this can involve having to account for their day to day spending for the rest of their lives.”
Will the retirement age change?If acted upon by the Government, the retirement age could increase over the coming years after a recent report from The Centre for Social Justice recommended the State Pension Age increase to 70 by 2028 and to 75 by 2035. The report says there are 3.3million economically inactive people aged 50-64 and that the UK is not responding to the needs and potential of an ageing workforce.
How can I prepare for retirement?It’s important to prepare for retirement immediately and to make sure you are in the best financial position possible when the time comes. This means getting help now if you are in debt. You can check your current State Pension age to get an idea of how well your existing savings will support your state pension in retirement.
Get free debt help today and call one of our friendly advisers on 0800 280 2816
Filed under Money Management