June 2009 Archive
Posted on June 30th, 2009 in Debt.
Although the gender gap is closing, women over 50 are the worst-affected by cuts in their savings, it has been revealed.
The fifth annual Scottish Widows UK Pensions Report shows 21 per cent of people over 50 have saved less over the last 12 months than they did in the previous year.
"We have seen our index and ratio figures rise considerably once again this year so the message that people need to improve their pensions savings is certainly getting through," noted Ian Naismith, head of pensions and market development at Scottish Widows.
The index found that 59 per cent of men are saving adequately compared to 47 per cent of their female counterparts, with 21 per cent of the over-50s having cut their savings over the last 12 months.
Rachel Le Brocq, press and public affairs manager at the Building Societies Association, recently urged people to look for a long-term savings account, rather than opting for "headline rates that might draw savers in".
Posted on June 30th, 2009 in Debt.
Consumers are more concerned with meeting the cost of their lifestyles than putting money away in savings accounts, it has been claimed.
According to the LV= Look After What You Love Index, 6.7 million people are happy to raid the savings pot in order to live comfortably.
Mike Rogers, LV= group chief executive, commented: "Rather than doing away with valuable insurance or eating into savings, it is important for people to take stock of their financial situation.
"Everyone can take some financial steps, however small, towards protecting the things they love most in life."
One in three people said that maintaining their current income was a worry during the financial crisis, while four per cent said they had taken out insurance to replace their income should they suddenly not be able to work.
Furthermore, 33 per cent have a financial safety net in the form of savings on a deposit, the study found.
Trevor Williams, UK chief economist at Lloyds TSB, recently warned that the desired savings rate has been too low over the last few years.
Posted on June 29th, 2009 in Debt.
People can avoid debt management problems later in life by starting to save from an early age, it has been suggested.
David White, chief executive of the Children’s Mutual, said some parents find their own pensions problems made worse as they look to help fund their children’s futures.
"If you are taking on more debt at 50 when you could have been putting more money in your pension fund, you are reducing what you will have when you retire," he warned.
Remortgaging a property is another way in which parents attempt to help their children later in life, although this can also prove costly in the long-term, Mr White claimed.
People in their 20s often start saving towards a house rather than thinking about a pension scheme, he added, which again can have an impact on the security of their finances in the future.
A recent report from the OECD found that in the UK, 43.8 per cent of retirement incomes are derived from private savings, while stocks made up the majority of pension fund portfolios in English-speaking countries before the economic crisis.
Posted on June 29th, 2009 in Debt.
Many of the country’s grandparents are putting money aside for their grandchildren to help give them a secure financial future, research has shown.
According to Saga, 13 per cent are making such contributions, equating to around 1.8 million grandparents throughout the UK.
"It’s good to know that the prudence and experience of many over-50s has enabled them to support their children and grandchildren who need financial help in these uncertain times," commented Andrew Goodsell, chief executive of the Saga Group.
Over half (54 per cent) of those questioned said they put the money away to help them fund their adult lives, which may include university fees and career development.
More grandfathers than grandmothers are putting their cash towards helping out their relatives, as the findings also reveal that some even still fund their adult children.
Recent findings from NS&I showed that on average, Britons are setting aside £92.41 each month, up from £90.12 in winter 2008/09.
The number of people saving regularly has also remained constant for the fifth quarter in a row, with nearly half of the population setting some money aside each month, it also said.
Posted on June 26th, 2009 in Debt.
Suggestions that people may need to work later in life have come about because they are simply not saving enough, it has been said.
Pension expert Ros Altmann revealed that there has been success in keeping people alive longer, although employers are still "throwing everybody on the scrap heap".
"Somebody needs to stand up and have the courage to say that this is not about working till you drop but about working two or three days a week so that you have money to spend on your time off," she suggested.
Pensions alone are not going to save the pensions crisis, Dr Altmann emphasised, due to the lack of ability people have to save.
Governments must continue reforms to ensure that public and private retirement income provision is socially as well as financially sustainable, suggested a report from the OECD.
Those with long periods in defined contribution, private plans and British workers nearing retirement will feel the greatest impact of the recession on their pension plans, it found, with stocks making up most of pensions’ portfolios in English-speaking countries.
