As pensions dwindle, ‘people to rely on savings’

With the amount being paid out by pension funds expected to drop the number of people having to dip in to their savings each month is likely to rise, the director of Churchouse Financial Planning has warned.

Keith Churchouse said that people who have taken the opportunity to build up savings are likely to “be reliant” on them once they retire.

“I do think that people are very unlikely to be reliant on pensions in retirement,” Mr Churchouse commented.

According to the Fidelity Retirement Index, a worker who retires now on the average UK income can expect less than £30 a day from their pension payout.

The organisation says that someone currently earning the national average salary of £22,900 who is about to retire will have an annual income of £9,618 from their pension, which is about £185 a week.

Mr Churchouse said he does not think “there’s any doubt” people will rely more on their savings in old age.

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NAPF: Pensions still seen as most important benefit

Workplace pension schemes are considered the most important benefit an employer can offer and it is expected that their up-take will increase in the future, the National Association of Pension Funds (NAPF) has said.

The Personal Accounts system is expected to be launched in 2012 and the changes in workplace pensions that it will bring about are expected to make them even more popular, according to the organisation.

Mark Brooks, a spokesperson for the NAPF, said: “There is a growing realisation that to enjoy a good standard of living on retirement, there is a need to have an additional pension…it is no surprise [workplace pensions] are still seen as the most important benefit.”

He said that tax advantages and employer contributions are two factors that make work pensions attractive to employees.

A recent survey by NAPF found that almost 49 per cent of respondents said they would feel greater loyalty to their company if a workplace pension was offered.

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Over half of Christmas consumers spend too much

More than half of consumers in the UK spend more than they can afford during Christmas, according to experts.

The figures from the Department of Work and Pensions show that 55 per cent of spenders over stretch themselves financially over the festive period.

Susan Clark, personal adviser at Jobcentre Plus, said that consumers should view their personal finances in the long term.

“Struggling to pay the bills after Christmas is a situation that many people find themselves in and it can be very stressful. Short-term fixes provide temporary relief but getting a job is the best way to improve your financial situation in the long-term,” she said.

People in London and the East Midlands are the best at planning their finances for Christmas whilst those in the North East are most likely to over spend.

Meanwhile, the Consumer Credit Counselling service has advised that those struggling with debt should avoid the January sales and concentrate on paying off them off.

Tags: cent, jobcentre, term, Jobcentre Plus, employment

Mothers should be able to make pension contributions

More action is required in order to ensure that women are able to contribute to their pensions through motherhood, according to the Fawcett Society.

Company spokesperson Sarah Campbell has claimed that the government and employers need to act on the issue, noting that women who take time out of work during motherhood have reduced access to both private and state pensions.

Her comments follow research by the society that reveal that men save £51.03 more each month than women, while 55 per cent of single mothers were found to have no savings at all.

Ms Cambell believes that the gender pay gap lies at the root of the problem and that mandatory pay checks for all employers should be enacted to prevent the problem.

“Measures are needed to increase access to flexible working for parents and to encourage and enable men to take more responsibility for caring for children, so that this task can be shared more equally,” she added.

A UK campaign group for equality between women and men, the history of the Fawcett Society traces back to 1866 when Millicent Garrett Fawcett instigated a peaceful campaign for women’s votes.

Tags: Yvette Cooper, women, pay, cambell, women's votes, employment

‘No turning back’ for entrepreneurs

A large proportion of people in the UK who have struck out on their own would not want to return to doing a 9 to 5 job, according to a new study.

Research carried out by Abbey found that 77 per cent of entrepreneurs in Britain would never want to work for someone else again.

Those working in the East Midlands were the most satisfied with being their own boss, as 91 per cent wouldn’t go back to their former employer. More than half of those in Wales, however, would return to their old job.

“Running your own business can be tough but rewarding,” said Ian Wilson from Abbey.

“The benefits of running your own business obviously outweigh the negatives. Once people have taken the plunge they are unlikely to want to return to their old lifestyle no matter what problems they may encounter.”

As well as potentially challenging financial circumstances, entrepreneurs could face hurdles from a social point of view as well.

A spokesperson from the National Federation of Enterprise Agencies warned: “Running a small business can be a lonely occupation, especially to someone who has become accustomed to the world of employment and big organisations.”

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New graduate deals from RBS

This year’s set of graduates are being offered £2,000 interest-free by the Royal Bank of Scotland so that the pressure is off somewhat during their first three years of work.

Nicknamed the Graduate Royalties offer, it consists of two distinct options. Graduates can either go for a three-year interest-free stepped overdraft facility of up to £2,000 or the aforementioned interest-free loan.

“Many graduates feel under financial pressure after leaving university, so to help in easing that pressure, we have a great team of advisers on hand in our branches,” said Katie Cassidy from the bank’s graduate banking department.

“They can talk to graduates about any concerns they may have with the financial transition from studying to finding employment.”

Other perks that come with the account include a 25 per cent dining discount at over 450 restaurants in the UK, commission-free travel money and ten per cent off selected holidays.

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Over one thousand jobs to go at Barclays

Over one thousand people employed by Barclays Bank will be losing their jobs in the next three years, as the bank prepares to move its Poole based processing and IT office.

Bank officials have announced that eleven hundred people will have to lose their jobs over a three year period, cutting the workforce at the office from nineteen hundred to just eight hundred. The bank plans to mover operations to a smaller building in the area.

One union official from Unite stated: ‘We are very concerned at today’s announcement which will mean a large reduction of jobs in Poole. Unite does however have robust agreements in place and the bank’s plans are spread over the next three years, so we will be working with the bank to ensure the maximum number of redeployments and voluntary redundancies. We do welcome the news that Barclays will have a new building in the area, albeit smaller, so ending speculation that they may pull out of the area altogether.’

A council official also commented, stating: ‘We are saddened to hear of the job losses at Barclays and will be working closely with them and local agencies to offer as much support as possible to those staff affected. Although the job losses will impact the town in some areas, we will be doing everything in our power to counter the effects. We are continuing to work with Barclays to find suitable sites in Poole that will meet their business requirements and are pleased that they are committed to staying in the local area.’

The Chief Executive of the local council added: ‘The job losses are very regrettable. We will be working with Barclays to set up a strong and helpful network amongst local business and employment organisations to support those affected through information, advice, job searches and retraining opportunities.’

Tom Smith
23rd May 2007

Tags: cuts, IT, barclays, employment, losses, jobs, union, business