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It’s looking positive for pensions

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It has been no secret the government has been concerned for the future of pensions and just how millions of us will cope financially when we reach retirement age. With unemployment still at an all time high, along with many working families tightening their purse strings wherever possible, pensions have been seen as an additional expense that many just can’t afford. With less and less making contributions to either state or private pension schemes, there simply isn’t enough money in the pot to provide for everyone.

Government response

In response, the government has encouraged businesses to automatically enroll employees into a pension scheme unless they opt out and have also reformed the financial advice market so that consultants can no longer gain commission on products they recommend, creating a more level playing field for all. It seems to have had a positive impact!

Should I get a pension?

Figures are up

Pensions mutual Scottish Life, reported a huge rise of 26% in new business last year with its parent company Royal London, announcing a pre-tax profit increase of 19%. Since the start of auto-enrollment, new pension business for Scottish Life has risen by a staggering 54% with personal pensions up by 12% – an impressive set of figures and all while the UK is still facing an uncertain financial future.

The chief executive of Royal London, Phil Loney agrees; “Despite a difficult UK market, I believe the long-term prospects for our business remain positive, with opportunities to further improve the quality of our products, service and investment performance for the benefit of our customers and members.”

The future of our pensions

Although this rise in statistics should be seen as a positive step towards securing our financial futures in retirement, we shouldn’t rest on our laurels. As families continue to struggle there may be a rise in those opting out of pension schemes as they realize they can’t afford the contributions. But we all realise the road to a positive financial future for both families, individuals and the government, isn’t a quick short cut!

 

 

 

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About Rebecca Robinson

About Rebecca Robinson

After spending the last 8 years juggling life as a mum of two, wife and working full time as a Project Manager for a global telecommunications company, Rebecca Robinson made the decision to follow her love of writing and took the plunge; turning her passion into a full time career. Since becoming a full time writer, Rebecca has worked with various media and copy-writing companies and with the ability to make any topic relevant and interesting to the reader, now contributes to The Working Parent on articles ranging from credit cards to teenage relationships. Ever the optimist, Rebecca's dreams for the future include a house in the country filled with children, dogs and horses in the field!

Website: Rebecca Robinson

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