According to the ILC, people who take financial advice are on average £40,000 better off than those who don’t. Clearly this depends on the individual, but this study finds that those who took advice were significantly more likely to save more as well as to invest in the equity market.
In the UK we’re living longer and more active lives than ever before, but this means that we are spending longer in retirement than ever before too. When the state pension was introduced for over 70s in 1909, the average life expectancy was around 50 years old.
The Government has taken steps to encourage people to think about saving for retirement by introducing far reaching workplace pension reforms that make sure we all save for later life. The Pensions Act 2008 introduced new legislation to create a savings culture in the UK, requiring employers to enrol all eligible workers into a Qualifying Workplace Pension Scheme (QWPS). As an employer you need to establish a QWPS and this can be the current scheme you offer, or a new scheme via a specialist provider or insurer. This is known as Workplace Pension Reform or automatic enrolment.