Statistics regarding the State Pension and retirement saving in the UK are increasingly worrying.
For example, earlier this week, pension administrator Equiniti revealed that the number of UK pensioners relying solely on benefits such as the State Pension has risen to its highest level since the mid-1990s. According to Equiniti’s research, nearly one in five (17%) pensioners in the UK are currently living entirely off the State Pension and other welfare benefits – the highest level since 1995/96. Additionally, Equiniti also found that a high 25% of single pensioners have no additional income to supplement their State Pension payouts – the highest level ever recorded.
You don’t have to be a financial guru to understand that these statistics are concerning. The State Pension is not a lot of money. Currently, it’s just £168.60 per week. Living off that kind of weekly income is a challenge. Yet these statistics suggest that there are hundreds of thousands of people across the UK in this exact position. Despite being continually told by financial experts that we need to save for retirement throughout our careers, nearly one in five adults are entering retirement with absolutely no personal savings or investments, meaning they have no choice but to live off just £168.60 per week.
Worried about the State Pension?
If you’re approaching retirement and in a similar position, with little in the way of savings or investments to supplement your State Pension, it’s probably a good idea to act sooner, rather than later. Take action now, and you may still be able to salvage your retirement. So, what’s the best plan of action?
Without doubt, one of the first things to do if you have currently have no retirement savings is to establish a regular savings plan. Draw up a budget and look to save as much as possible, even if it’s only a little. Small savings can quickly add up. Here, you could also look to take advantage of the generous retirement savings schemes that the UK government has introduced to help people save for retirement. For example, save into a SIPP (Self Invested Personal Pension) retirement account and the government will top up your contributions by a significant amount (25% top-ups for basic rate taxpayers). This could help you build up your savings much faster.
Growing your moneyÂ
It’s also essential that you educate yourself on how to grow your money effectively. If your money is sitting in a cash savings account earning 1%, you’re not really going to get ahead when you consider the effects of inflation (rising prices over time). So, it’s important to learn about wealth-building strategies such as investing in stocks and funds that can help you grow your money at a healthy rate.
Saving and investing for the future doesn’t need to be complicated. And you don’t need to have a lot of money to get started either. But it is something you need to take responsibility for. The good news is that if you’re looking to learn more about growing your retirement savings so that you don’t have to rely solely on the State Pension, you’ve come to the right place.