According to the eight Scottish Widows annual report on UK pensions, it was found that less than half of the population is putting enough money aside for their retirement. Retirement savings are at the lowest they have ever been, with less and less people saving money. These are falling by 5% and even middle-income workers in company schemes need to find an extra £600 a month for a basic level of retirement.
Doing the maths
People need to find a solution to this problem fast. Assuming that the state pension is a flat rate £140 a week, as proposed by Iain Duncan Smith, this will give pensioners £7,280 a year. Consequently a £20,000 income a year would need a private pension of £12,720. This has put many people into panic mode. The fact that we live longer means many of us no longer qualify for pensions at the age of 60 or 65 years old. This puts the question on our minds: ‘how can we achieve these savings?’
Proposing that an individual earns £35,000 a year and is in a company scheme where the employer only pays six percent of their salary towards a pension, this is feasibly not enough to cater to our needs. It is important to consider other saving options, as if not, you may end up in debt when you need your money the most.
Is education the solution?
As we get older we must consider changing our actions and also the way in which our homes are laid out, this of course costs money. Many will choose to stay at home as long as possible but this does necessitate the need to make a few changes here and there.
You may wish to introduce a stairlift into your home; this will allow you to gain access to the upper half of your house with ease. Alternatively, a walk in bathtub or an easy-access shower may be a necessity.
Finally, you may like to think about investing in a reclining chair that will allow you to get up and down in a quick and efficient manner. All of these mobility products have been calculated with both practicality and style in mind and as such have been designed to blend with interior spaces in the home but that doesn’t make affording them any easier.
The answer is therefore to rely on education. As the upper part of our communities, elderly individuals should be respected and revered but their position as non-workers often means that they’re not given access to the same information as the rest of us. Ensuring that they are up to speed on the latest figures and explaining what this means for them in a real sense is therefore something which should be prioritised in light of the debt initiative.