“Midlifers face ‘uphill challenge’ when saving for comfortable retirement”

Feb 6, 2024 | Pensions, Retirement

An independent (financial adviser’s) view

There are a heck of a lot of variables to consider here. One person’s midlife is another’s old age or relative youth, as is their ‘retirement’ should they decide to have one. Retirement, as often discussed on these very pages, is becoming a moveable feast rather than a straight switch from office to garden with a gold watch collected on the way. And of course what might be comfortable for you might seem abject poverty to him over there. There is apparently something called the ‘comfortable retirement living standard’, which is said to need a savings pot of £530,000 in today’s terms. That’s more than six times the amount that most of those surveyed midlifers have so far put away, so no wonder it’s seen as an uphill challenge. But neither retirement nor the pots that might be used to fund it are quite that simple; so worry but don’t panic would be my midlife message.           

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“Reeves backs down on plans to cut ISA limit”

“Reeves backs down on plans to cut ISA limit”

So it looks as though Cash ISAs are safe for the moment (FTM – is that a thing?) Rachel has apparently ‘bowed to pressure’ from the banks and building societies and decided not to reduce the allowance to £4,000 for cash and to keep the £20,000 parity with Stocks and Shares ISAs. Bowed also to common sense, I’d say.

“Two thirds of adults are worried about care costs in later life”

“Two thirds of adults are worried about care costs in later life”

A dichotomy/dilemma here. Two thirds of adults are probably right to be worried about the cost of care, which is huge and getting more so. Many of those currently worrying will have had first-hand experience with their own parents, which will have focused their minds on their own possible future.

“Why most won’t need to worry about IHT on pensions”

“Why most won’t need to worry about IHT on pensions”

Many a government has made the point that only a minority will be affected by this or that tax change or tinker. It is, however, both perception and aspiration which are important, and they are what makes IHT the ‘most hated’ of all taxes – along with all the others, of course.