Pensions

Divorce costs £2600 per year in expected retirement income

Back to_back_older_coupleRetirees who have been divorced expect a £13,800 annual retirement income compared with £16,400 for those who have never had a marriage breakdown.

Around one in five divorced people do not have private pensions.

22 per cent of previously divorced people retiring in 2013 are doing so with debts.

Divorce reduces average expected retirement income by around £2,600 or by as much as 16 per cent a year, according to new research from Prudential.

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Over one million British pensioners live abroad and claim UK state pension

Average monthly pension for Brits has dropped by over €145.20 since 2007

Pensioners in South Africa get best return on state pensions

Pensioners in Switzerland fair the worst

British pensioners living overseas have potentially lost out on over £10.6 billion of their income since 2007 due to the falling strength of sterling, according to HiFX, the foreign exchange specialists.

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Retirement income shortfall sees pensioners losing £2400 a year

older people_moneyNew research commissioned by Investec Wealth & Investment (“IW&I”) reveals that almost two thirds (62%) of retired people who rely on savings and investments to fund their retirement have seen their income fall outright or in real terms over the past two years.  On average, retirees have seen their income drop by £2,400 a year due to sub-inflation yields on ‘safe haven’ assets such as cash and bonds. 

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New State Pension: know the facts

steve webb_mpThe Government is introducing a new State Pension for anyone retiring after April 2016. This will be a simpler, fairer pension giving those who qualify a single amount, set above the basic means test.

The current system is too complex and hard to understand. Over many years, a hotchpotch of add-ons and extras has built up to compensate for a long-term decline in the relative value of the basic State Pension. This has left many people confused about what they will get from the state when they retire.

Before these reforms enter Parliament for their second reading on Monday 17 June, the Department for Work and Pensions has sought to debunk some of the most common “myths” about the new system.

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Poverty Line Pensioners: One In Seven Will Retire With No Pension

Prudential logoState Pension accounts for 36 per cent of the average retirement income in 2013

One in five of those retiring in 2013 will be below the poverty line

Women are three times more likely than men to retire with only a State Pension

One in seven (14 per cent) people planning to retire this year will depend on the State Pension as they have no other pension, according to new research from Prudential.

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Six secrets for SIPP success

Hornbuckle MitchellAs more individuals look to take control of their retirement destiny with a self-invested personal pension, SIPP and SSAS provider Hornbuckle Mitchell says Financial Advisers and clients alike should take great care in ensuring the SIPP provider they choose can meet all their needs.

Stewart Dick, Head of Sales, said: “SIPPs continue to offer investors a great way of saving for the future, providing the most flexibility of any pension product currently available in the marketplace. However, increased scrutiny by the regulator and economic headwinds means there is greater pressure to select the right provider.

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Latest pension reforms are ‘ill-conceived’

Nigel Green_PhotoThe decision, announced yesterday by Pensions Minister Steve Webb, to stop foreign spouses claiming a UK state pension based on their husband or wife’s history of National Insurance contributions has been slammed by the boss of the world’s largest independent financial advisory firm.

Nigel Green, chief executive of the deVere Group, is speaking out in response to the news that the government plans to scrap claims on contributions made by one’s spouse under the married person’s allowance, from 2016.

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Campaigners claim government is lining up to break promise over universal pensioner benefits

dot gibsonBritain’s biggest pensioner organisation, the National Pensioners Convention (NPC) has claimed there is growing support inside the government to abandon the Prime Minister’s commitment to protect universal pensioner benefits up to the general election, following the comments by the Secretary of State for Work and Pensions, Iain Duncan-Smith in today’s Sunday Telegraph.

Dot Gibson, NPC general secretary said: “Mr Duncan-Smith has got himself into a terrible mess over this issue. Elements in the coalition government are clearly desperate to take away the bus pass and winter fuel allowance from millions of older people, but they are worried about the political backlash that would follow if they did so. The idea of people paying back their benefits is the latest in a long line of suggestions that are aimed at softening up the electorate for a change. Using additional taxes on wealthier pensioners would be a much more effective way of recouping the money back.”

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Expat Pensioners’ income falls by up to 50% in a decade

Equiniti, one of the UK’s largest pensions administrators and business process outsourcing providers, warns that a decade of a weakening pound has left many pensioners living abroad with up to 50% less buying power from their retirement income now than when they first retired.

Equiniti Paymaster currently administers the payroll and international payment of pensions for over 50,000 expat pensioners, many of whom are former public sector workers receiving an average pension of around £5,600 a year.

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