New Financial, the think tank founded by former journalist William Wright, recently issued a report highlighting a growing need for an increase in pension contributions.
While workplace and other private pension schemes can bolster income for retirees who find the state pension inadequate to sustain the lifestyle they seek when they are no longer employed, retirement plans need continual assessment to ensure they remain relevant.
Retirement planning specialists in Shropshire, Hampshire and other counties help their clients by ensuring plans are aligned with their personal financial circumstances and retirement ambitions, but also in step in the fluctuating cost of living.
The London think tank, which focuses on capital markets. stated in its September report that the current standard contribution rate of eight per cent was not enough to provide a comfortable retirement for most people in the United Kingdom.
The report of its findings contrasted the UK’s pension contributions with those in other nations, discovering a distinct difference. It showed how many countries have adopted a much higher minimum pension contribution rate. For instance, Sweden and Denmark have established a minimum contribution of 15 per cent, while Ireland and Australia are now moving their rates to 12 per cent.
Additionally, in other nations, employers contribute a higher percentage than employees. In Australia, the employer covers the entire minimum contribution.
With no plans for the UK to change legislation regarding altering the current rates of contributions, it is, at the time of writing, up to individuals to increase how much they add to their pensions to support their retirement.
