Tag Archives: pension planning

Prudential reveals more than 2 million couples have never discussed finances together

Prudential reports that many British couples are burying their hands in the sand over their financial situations. One in seven* (14 per cent) couples over the age of 40 – or around 4.2** million people – admit they have never discussed their finances.

Fears about having awkward conversations drives this behaviour, with 15 per cent of those surveyed admitting they feel uncomfortable talking to their partners about financial planning.

A concern that these conversations will boil over into arguments is another reason that couples avoid talking about their finances – money is the third most likely subject to cause arguments among couples, with nearly one in four (23 per cent) claiming that they fight over finances, ahead of work (10 per cent), and politics and religion (5 per cent). Only household chores (27 per cent) and disputes about family (30 per cent) are more likely to cause disagreements.

Even for the majority of couples who do discuss their retirement plans, long-term issues are likely to be side-lined, as short-term everyday expenses take priority. Daily living costs and household bills are regularly discussed by the majority of couples (60 per cent and 52 per cent respectively), and one in three couples (34 per cent) speak about the costs of home improvements, large purchases and luxuries.

However, discussions about long-term planning are far less prevalent, with only 16 per cent of couples claiming to regularly talk about retirement income and pension planning. Only 3 per cent of couples claim they have had conversations about inheritance planning and tax.

Vince Smith-Hughes, retirement expert at Prudential said: “Money can be a tough topic to discuss at the best of times. Many couples prefer to steer clear of conversations about finances, and especially discussions about longer-term issues like retirement which might feel light-years away. Yet it really pays to be honest about your financial situation. Being open about discussing long-term financial planning as early as possible will help couples to ensure they can enjoy a comfortable retirement together.”

Only 13 per cent of respondents said they had seen a financial adviser with their partners in the past five years. A further 13 per cent say they or their partner has seen an adviser separately within this timeframe and 8 per cent have seen an adviser but not within the past five years. The vast majority (66 per cent) have never seen a financial adviser to discuss retirement or pension planning.

Vince Smith-Hughes continued: “Websites like www.pensionsadvisoryservice.org.uk andwww.moneyadviceservice.org.uk can help with some in-depth information about retirement options. A joint conversation with a financial adviser should help couples to make the right pension savings decisions during their working lives, so that they’ll have the right income to support their lifestyles in retirement.”

Via EPR Network
More Financial press releases

Standard Life Warns Public To Inflation Proof Retirement Incomes

Standard Life is warning anyone thinking about retirement to consider the effects of inflation eroding their income. New data released today by the savings and investments specialist shows that many people could see their retirement income swallowed up by the basic costs of living within seven years, as the effect of inflation impacts their spending power.

Using Office for National Statistics data and official Government inflation figures, Standard Life has calculated that someone with a personal pension pot of £80,000, buying a level annuity, will spend their entire monthly income (from private and state pensions) on basic living costs like food and fuel within just 7 years of retirement*.

John Lawson, Head of Pensions Policy at Standard Life said: “The cost of living is rising fast for most people in the UK, but this can be particularly acute for pensioners. Their spending habits are driven by commodities such as food and fuel bills and these inflation rates are much higher than the overall UK inflation rate**.

“People need to consider how to protect their buying power in retirement from the ravages of inflation over a long period of time, which could be 30 years or more. If pensioner inflation remains at around 6% a year, people with a fixed income could lose almost half of their spending power within a ten year period.

“There are many options to consider at retirement which could minimise the impact of inflation on your income, so seeking professional financial advice is vital.”

For further information on inflation proofing retirement income, and the choices available, interested parties can visit www.standardlife.co.uk/retirement_solutions/search.html.

Via EPR Network
More Financial press releases

Standard Life Reveals That One In Six Don’t Plan Their Future Finances

Standard Life has found that people in the UK live for the moment rather than the long term, with more than one in six (17%) failing to plan their finances at all, according to recent research from the savings and investments company.

The research, which looks into the UK’s fascination with living for now, finds that almost half of Brits (45%) only plan their finances just a year ahead, or less, with only a fifth of them (22%) planning up to five years into the future. Alarmingly, only one in six people (16%) plan more than six years ahead which underlines the real necessity for the UK to start addressing their long term savings plan. Doing this is critical if they are to be financially secure, achieve their future goals and live the lifestyle they want.

Of the UK regions, it was found that those from London were the top financial planners, with one in six (17%) planning six years or more ahead. In contrast, those from Scotland came out as the least likely to make long term financial plans, with only one in ten (11%) planning more than six years ahead.

To find out more about the nation’s attitudes to planning for the future, Standard Life is launching a UK-wide poll and prize draw and linking up with boutique hotel specialist i-escape.com. Entrants have to vote on which prize they would prefer; a short break this year with accommodation from i-escape.com, or a holiday of a lifetime in five years. The results will show whether people in the UK favour instant gratification or greater long term rewards. This issue of desiring instant gratification presents an on-going challenge for the UK because people are living longer and their financial security cannot be guaranteed. It represents a huge challenge for providers and advisers who are keen to help consumers plan ahead so they can look to the future with confidence and optimism.

Bruce Kelsall, group and UK marketing director at Standard Life, said: “The growth in our ageing population has created a dramatic need to shift from a culture of spending to one of saving. People are completely comfortable making financial plans for a summer holiday; planning and investing in your future is no different. You may have to finance your lifestyle up to the age of 90 or even longer and while planning for this eventuality is essential, it needn’t be stressful. Even the smallest actions now can have a dramatic effect on your long term finances.”

Via EPR Network
More Financial press releases

Prudential Reveals That Advisers Pin RDR Hopes Online

Prudential has released research demonstrating the need for providers to constantly adapt their services to help advisers in both the online and offline environment, with more than half of the advisers surveyed (58%) ranking better quality or more online information and service options as the most important element of the product provider/distributor relationship surrounding preparations for Retail Distribution Review (RDR).

While improving online servicing is seen as a must do by advisers, they also believe that solid account management relationships must go hand-in-hand with technology. This sentiment was highlighted by 40% of advisers citing more or better dialogue with an account manager as the next most important service element surrounding their preparations for RDR. With a combination of expert face-to-face and telephone account management teams readily available to guide advisers through obtaining and completing sales, this is a service Prudential is already supports.

Ian McKenna, Director of the Finance and Technology Research Centre (FTRC) said: “RDR will make it essential for advisers to focus on the cost of doing business in ways they have never needed to previously. It is not giving the advice that takes excessive time but the preparation. Collating information manually is hugely time consuming, electronic services can deliver in seconds what might otherwise take hours. Historically the cost of those hours has been subsidised by commission, when it is the client potentially paying for the time racking up hours in this way will no longer be acceptable. Automated delivery of information to advisers will be a hygiene factor in a Post RDR environment.”

57% of advisers claimed that their volume of client enquiries regarding retirement planning remains unchanged. This is encouraging news in the current economic climate, proving that it is vital for providers to arm advisers with all the necessary tools to deal with their continuous day-to-day business.

Jon Cross, Head of eBusiness at Prudential said: “Our research shows that advisers are becoming increasingly dependent on online services to help guide them through the changes that RDR will bring. Prudential works very closely with advisers to develop its online services, we constantly review our content and navigational functionality, and will of course continue to evolve our systems to help advisers as they change their business models ready for RDR. We are committed to providing a high level of service to advisers to ensure that they spend as little time on administration as possible. Taking their business online frees up time that would have traditionally been spent processing paperwork.”

The benefits of online servicing are clear for advisers, allowing easy access to brochures, illustrations and valuations outside normal office hours. Prudential’s adviser website houses a wealth of useful material including product guides, support literature, real-time valuations and market analysis from industry experts. Advisers can also find a variety of interactive tools covering pension planning, drawing an income and annuitisation. The ‘Support for you’ section provides advisers with updates and news regarding regulatory issues such as TCF and RDR. Also under this section advisers can hear what Prudential experts have to say as they explore various opportunities and considerations advisers face in helping their clients save for and provide an income in their retirement.

Prudential surveyed 123 independent financial advisers during April 2008.

About Prudential:
“Prudential” is a trading name of The Prudential Assurance Company Limited, which is registered in England and Wales. This name is also used by other companies within the Prudential Group, which between them provide a range of financial products including life assurance, annuity products – including retirement annuity, pensions, savings and investment products. Registered Office at Laurence Pountney Hill, London EC4R 0HH. Registered number 15454. Authorised and regulated by the Financial Services Authority.

Via EPR Network
More Financial press releases