Chapter 1.pdf - Pensions and retirement planning R04...

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Pensions and retirement planning R04 Chapter 1: Challenges to pension provision 1) People are not saving enough 2) Companies are changing the type of scheme they offer (closing DB schemes e.g) 3) Pension Scandals - In 80’s/90’s many people wrongly advised to move from occupational to personal pensions 4) Falling stock markets and annuity rates - Over last 30 years annuity rates have fallen significantly, due to falling gilt yields and improving mortality rates. 5) Pensions are complex - Majority of people struggle to understand different types of pension/what will be provided by the state. - 20% less than it was in 1950s in real terms because 1980 – 2011 the basic state pension increased in line with prices rather than earnings 6) People are living longer - This means that proportion of people paying tax and NI is falling - At same time more people are being paid state pension, thus not making adequate provision for old age
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Government reforms (to ensure pensioners enjoy adequate standard of living whilst reducing cost)
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  • Winter '12
  • Life expectancy

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Christopher Reinemann
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