Local Residents Urged to Make Provisions for their Pension Pot

A local firm of financial advisers is urging local residents to think realistically about their future to ensure preparations are in place to avoid a dramatic income shortfall when they retire.

Following the reform of the country’s pensions system announced last month, Shropshire-based Carl Summers Financial Services is highlighting the importance of putting together a retirement plan, after changes to the system mean only qualifying individuals will have access to a full pension and many people could face receiving less.

Over the past year, the government has announced a series of changes and reforms to the pension system, which have been put in place to provide working people with the option of building a pension they are likely to want when they retire, rather than relying upon the state pension. The auto-enrolment scheme introduced last October means working people can now pay into a pension scheme and their employers and the government will too.

Claire Dentith, pension expert at Carl Summers Financial Services, said: “Pensions are often portrayed in a negative light in the media, but needless to say they are very much a necessity.  With an improved healthcare system and better standard of living, it is inevitable people are living longer and as a result the population of people claiming their state pension stands at a significant 11.5 million people.  As a result, the government has put in place the reforms to tackle these issues, and ultimately ensure people build up a prosperous pension pot to make sure they have the right provisions for their retirement.”

The single tier system, which is set to come into place in April 2016, will see the state pension set at a flat rate of £144 a week for qualifying individuals – those who reach pension age and have built up 35 years’ National Insurance contributions. The retirement age will also be increased to 67 years old between 2026 and 2028, to accommodate the increasing life expectancy age. The single tier system is being introduced to simplify the current system and make it fairer for all.

“It’s not all bad news for those hoping to retire before the government’s recommended age, but it is essential to plan. Many people are spending many more years in retirement than they anticipated, so it is vital the provisions are in place to continue the standard of living they are used to. I’d urge anyone who requires any further information about either the auto enrolment scheme or the single tier system, or alternatively those who require pension advice to get in touch on 01952 815930, or email [email protected], or visit www.summersheaney.co.uk,” Claire concluded.

Carl Summers Financial Services specialises in providing a broad range of financial advice to clients across Shropshire and the wider region, including services such as investments, mortgages, insurance and protection, and pensions.

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