The thought of someone else paying tax on what you’ve paid built up in your pension is odd. Another thought that is part of general thinking is that “there will not come a time when I stop working“. Prime Minister John Major taught us that wealth cascaded down the generations and many boomers getting into retirement today are finding themselves in their own houses with independent income not dependent on work because it is in pensions. We have great prospects from a state pension and a huge number of my generation want to carry on working for the fun of it.
Professional Pension’s Jasmine Urquhart gives us a roll of statistics that are fun but foolish
The people who comprise 60% (900 out of 1500) have probably never heard of Schroders and most certainly have better things to worry about than changes in other people’s wife because most of us do not pay inheritance tax!
I hate to break the news but most people look at the future and hope for the best without much plan but with hope that so long as they do what they’re told, they’ll get what they’ve been promised.
Schroders Personal Wealth chief executive Mark Duckworth said: “This report is more than a snapshot of public sentiment – it’s a call to action. Retirement should be a time of freedom, fulfilment and peace of mind, yet for many the path is paved with uncertainty.
Twice as many people worry about not having enough funds as those who simply lack a plan. The findings are both encouraging and sobering: while many are taking positive steps, too many remain unsure, under-informed or disengaged. More needs to be done to help people build the retirement they deserve.”
We live lives that throw up complexities, people get surprised by illness , die unexpectedly or live extensively. There is no certainty about it and those who are living into their nineties and beyond do so because of factors that aren’t financial! I am very sorry to deflate the balloon that Mark Duckworth has blown up, but there are many ways of making life happy as we get old and being wealthy is only one of them!
The certainty of taxes you’ll be liable to is achieved with spreadsheets and financial advisers
Personal wealth adviser Alice Harmer said: “Engaging with financial advice can transform your retirement confidence. In fact, our research found that people with an up-to-date retirement plan are 90% more confident than those without. Even small steps – like reviewing your plan or speaking to an adviser – can make a real difference, helping you feel in control of your future, no matter what stage of retirement planning you’re at.”
But certainty of what you or your family will pay in taxes, get in income from investments, leave in capital to children or charity is not set in stone, it changes over time according to health and luck and work. We like to set out boldly but quickly find new plans are upon us.
Financial planning does give confidence but it is the confidence to go on and meet changes of which tax is a small part. Which is why most people are care-free about the taxes and frankly why shouldn’t they be? Financial advisers and wealth managers are there for the worriers who need someone to help them be more secure. This survey shows that most of us will muddle through and have better things to think about than financial planning!
Which is why there need to be defaults for most people! Default pensions, default healthcare and a way to keep families together and happy as John Major promised would be – from generation to generation. All this in moderation. Major remembered what it was like as a child growing in poverty, it is not something many of us have memory of.
We really have come a long way from the years of war and followed that but to suppose that we are losing something we are losing what we once had is not right. We do not need to lament the loss of excess wealth to tax, we should exalt in longer and lengthier lives and a certainty from pension credit to full replacement that gives most of us enough to be paid enough to retire.
We really don’t need to worry about wealth taxes, to be happy as a nation. We don’t need to buy the FT or Professional Pensions or Schroders as our financial wealth guide! Life has more important things for most people to worry about than wealth!
