During the Queen’s Speech earlier this week, proposals to reform the pension system were introduced, in an attempt to halt the decline in retirement saving.
Measures introduced as part of the Private Pensions Bill, will see ministers support collective industry-wide pension schemes and more flexible employer-based schemes; which will reduce the risk to individuals – whilst enhancing pension pots.
The latest measures are based on the systems currently used in Denmark and the Netherlands; and will provide employees the opportunity to pool their investments into a “mega fund” which will pay them an income in retirement, rather than saving into individual pension pots that are more susceptible to the ups and downs of the financial markets.
Whilst the latest measures are set to reform the current pension system, at Birchwood Investment Management Ltd, we are aware of the importance of saving for retirement as soon as possible – which is why we provide tailored retirement planning advice and guidance.
By paying into a pension scheme sooner rather than later, you will increase your pension pot – and it is estimated that saving from the age of twenty, rather than the age of thirty, could add thirty-nine percent to an individuals retirement income; whilst deferring retirement from sixty-five to seventy, has the potential to increase your pension pot by forty-three percent.
To help you make the most of your retirement savings, our team of financial advisors can help – to find out how, visit our website or come and speak to one of our advisors.