Rachel Smith’s Post

1 in 4 elderly people in the UK are already living in poverty. This is a shocking statistic and only expected to grow as the cost of living continues to increase. Imagine being forced to work until 71 as this report suggests? Is everyone going to be mentally or physically capable of working until age 71? Unlikely, but it proves the point that we simply cannot rely on the government to fund us when we are no longer able to work. Private pensions and personal savings are the only way we can provide supplementary income for ourselves when we want to stop working. Drop me a message if you’d like to understand more about how to effectively plan ahead. #financialplanning #finalsalarypension #definedcontributionpension #definedbenefitpension #fiscaldrag #taxallowances #ukpensiondeficit #ukpensioncrisis #ukinterestrates #financialsecurity #ukpensionplanning #ukpensionsforexpats #brexitoutcomes #retirementplanning  

⚠️ Mind the gap ⚠️   Analysis of the DWP’s Pensioner Income Series from Broadstone shows that the gap between ‘haves’ and ‘have-nots’ in retirement is widening.   Damon Hopkins our Head of DC Workplace savings at Broadstone spoke to the Daily Express about why pensioner income inequality is rising and the importance of workers contributing adequately to their pension to achieve a decent standard of living in retirement. Read more about the analysis and Damon's thoughts below 👇 👇 https://lnkd.in/e6XYjEst

The Swiss refused to raise the retirement age and approved the 13th pension. In a referendum organized by trade unions, the Swiss opposed increasing the retirement age and approved a 13th pension for themselves. The authorities have not ruled out raising VAT to implement the initiative, which will cost 4.1 billion Swiss francs annually. The Swiss, at a referendum held on March 3, opposed raising the retirement age to 66 years and approved the initiative of the Swiss Association of Trade Unions (SGB) to pay pensioners a 13th pension in addition to 12 monthly ones. According to the voting results, the SGB initiative for the 13th pension was supported by 58.2% of citizens. In turn, the proposal of the youth wing of the right-wing Free Democratic Party Liberals (SDPL) rejected the proposal to raise the retirement age to 66 years by 74.7% of referendum participants. Currently, Switzerland's minimum old-age and survivors' pension (AHV) is CHF 1,225 per month and the maximum is CHF 2,450. For married couples it is limited to 3675 francs. Swiss voters since 1848 have never approved plans to increase state-paid social benefits. The initiative, which will increase pensioners' incomes by around 8%, was brought forward by the SGB due to "rising costs of living which have led to a decline in the purchasing power of pensions". According to political analyst Georg Lutz, the approval represents a "watershed moment for Switzerland." “Just ten years ago, when bourgeois parties and business associations were against it, such a proposal would have had no chance,” he told Bloomberg before the vote. Sotomo poll director Michael Herrmann linked the pension decision to the Credit Suisse "bailout" last year. “Many people think that entrepreneurs and managers have violated the unwritten Swiss social contract: managers are modest in bonuses and debauchery, and people are modest in social demands,” he said, adding that people have long been unhappy with the behavior of corporations and tax evaders. Pensions should be increased from 2026, says the text of the SGB initiative. The unions have not presented a plan to finance the expected additional annual costs of 4.1 billion Swiss francs, “so the vote will leave the government, which recommended rejecting it, scrambling to find the money.” Finance Minister Karin Keller-Sutter previously noted that since Switzerland already has a budget deficit of 4.3 billion francs for 2022, approval would likely require an increase in value added tax (VAT).

Many Boomers now control an increased share of UK wealth, sparking resentment among Millennials and Gen Z. Is the UK’s wealth inequality about pensions—or has age become a stand-in for class? Dive into Josh Kitto’s take on why the ‘triple lock’ is shifting British generational alliances. #Inequality #Wealth #GenerationalDivide https://lnkd.in/exWyeSeK

I am sharing some of the acknowledgements from the Work and Pension Select Committee of Policy in Practice's work in the review of Benefit levels in the UK. While it's great when our work is acknowledged, its even better when it makes a difference to people's lives. While we've made a real difference to practice, helping thousands of individuals access tens of millions in unclaimed support, policy really isn't doing enough to keep up. This is summarised both in the Work and Pensions Committee report, and in the todays HBAI figures which found that: - Household incomes fell in real terms, particular after housing costs reflecting rising rents and mortgage payments. - Inequality grew, with lower income households seeing a larger proportionate drop in their incomes than better off households. - Absolute poverty rose for children, highlighting the impact that policy choices are having on increasing poverty for children and for Pensioners, where Pension Credit and Attendance Allowance remains underclaimed (https://bit.ly/3ozvejf) - The number of people needing support from a food bank grew, with the largest increase coming from families with children While cost of living payments helped in that the picture would have been even bleaker had they not been introduced, todays figures highlight how policy choices, in particularly low levels of out of work support in the context of rapidly rising living costs, have hit the potential of people across the country, and therefore the country as a whole. If you want more detail, you can access the HBAI report here - https://lnkd.in/d8jK3k-3

Swiss vote: ‘yes’ to higher pensions, ‘no’ to retiring later. The Swiss have voted to boost monthly payments for pensioners amid concerns over the rising cost of living in pricey Switzerland. A separate proposal to gradually raise the retirement age to 66 and beyond was clearly rejected in a separate nationwide vote. This is a wonderful message to all those who have worked all their lives. It is the people who have the power in Switzerland. And I am very proud of our country and our democracy.” ‘Now we can do something for ourselves that will broadly and effectively relieve the financial situation’ for pensioners.” said Lukas Golder. In a separate pension vote on Sunday, 74.7% of Swiss voters rejected a people’s initiative aimed at gradually raising the retirement age from 65 to 66 over the next decade and then pegging it to life expectancy to ensure full financing of the state pension system. Why don't other countries do the same and benefit citizens who have been working all their lives? #pensioners #Police #GuardiaCivil #Escoltas #ExecutiveProtection #CloseProtection #Bodyguards https://lnkd.in/ddfnz7dK

The #UK is #ageing steadily as the large Baby Boomer generation arcs towards #retirement and birth rates among younger people continue to fall. In this week's #InTheKnow blog, Rathbone #Income Fund co-manager Carl Stick argues these shifts are already exerting immense pressure on so many aspects of life and the #economy: pensions, taxation, vital services like healthcare, the jobs market, you name it… #RathbonesAssetManagement #UKEquityIncome

Policy in Practice’s ongoing research and analysis of benefit levels was recognised by the House of Commons Work and Pensions Committee in their recent report, "Benefit levels in the UK: Second Report of Session 2023-24": https://lnkd.in/eKkhVjKe This report follows the Committee's call for evidence launched in 2023, which aimed to assess the adequacy of current benefit levels for working-age individuals and families. As a leading voice in social policy analysis, Policy in Practice and our director Deven Ghelani submitted evidence which contributed to the report: https://lnkd.in/eCKq9fah Our evidence, drawing on extensive data and analysis, highlighted the significant gap between current benefit levels and the essential costs of living. We demonstrated how this shortfall leaves many households struggling to meet basic needs, even before the recent cost-of-living crisis. The report also cited our research, 'Missing out: £19 billion of support is unclaimed each year', and the impact this has on poverty in the UK. Read our full £19 billion report here: https://lnkd.in/eE89QTqK

'Potential Means-Testing of the State Pension - One of the more radical ideas being considered is means-testing the state pension, which could reduce or eliminate payments for wealthier retirees. Currently, individuals over 66 with 35 years of National Insurance contributions receive £11,502 annum. Experts warn that this move could destabilize retirees' financial security. If means-testing were implemented, a system akin to the personal allowance taper might be used. For every £2 earned above a threshold, retirees could lose £1 of their state pension. This could completely remove state pensions for those with significant extra income.' Political suicide? #statepension #budget

If UK economic growth continues to limp along for decades, how safe is the State Pension in its present form? What are the alternatives? Read more in my latest monthly opinion column for FTAdviser. Coming down the tracks is another review of the state pension age promised to be within the next two years of the new government to consider increasing the state pension age from the current 66 to 67 from April 2026 (confirmed) to age 68 mooted as the next possible rise. Hard decisions lie ahead. Something has to give in a United Kingdom where growth sags. In 2024 to 2025 the UK government is forecast to spend £303.3bn on social security. Some 55% of social security expenditure goes to pensioners including the State Pension, to cost £137.5bn in 2024 to 2025. #pensions #statepension #law #pensionsreform #policy #publicrelations #financialjournalism #actuarial #consultancy #financialplanning #ifas #financialadvice #finance #money #socialsecurity #ukgovernment #dwp #tax #hmtreasury #economics #finance https://lnkd.in/eFJFuU42