Sunday, August 24, 2025
  • Login
Euro Times
No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
Euro Times
No Result
View All Result

How to protect your retirement savings as living costs rise

by Vicky Shaw
December 22, 2022
in Finance
Reading Time: 4 mins read
A A
0
Home Finance
Share on FacebookShare on Twitter

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails

Sign up to our free breaking news emails

Pension savers are among those feeling the squeeze as living costs rise – with some people considering cutting back what they are paying in, or worrying that the amount they have put by won’t be enough.

More than a quarter (27%) of recent retirees say they don’t know how to reduce the impact of inflation on their retirement income, according to research by asset managers abrdn.

Wondering how you can protect your pension and retirement income as living costs soar? Colin Dyer, a financial planning expert at abrdn, shares his top tips…

1. Make your money work harder

Cash savings rates have been improving in recent months following a string of Bank of England base rate hikes, but inflation is still eating away at the real value of people’s savings pots.

The Financial Conduct Authority’s Financial Lives survey found 4.2 million people in the UK hold more than £10,000 in cash and are open to investing some of it.

Dyer says: “With inflation reducing the real value of your savings, it could be worth looking at how your money can keep up with or outpace inflation. This isn’t going to happen if you keep all of your money in cash savings.

“Weigh up the types of medium and longer term savings and investment products available to you. Or, if you already have money invested in a pension or elsewhere, you might want to consider reassessing your attitude to investment risk,” he adds.

“Remember too that if you withdraw too much too quickly from any pensions you have, you could be at risk of falling victim to your savings losing value in real terms amidst rising inflation.”

2. Make the most of tax allowances

In general, retirees can take the first 25% of their pension pot tax-free.

“It can be a very good move to use this tax-free cash over multiple years (when the size of the pension pot may have grown bigger), rather than in one go,” says Dyer, adding that it’s important to plan the order investments are used in. “Speaking to a financial adviser could help you to minimise your tax bill to make sure you’re getting more income.”

3. Think about consolidating old pensions

Transferring and consolidating your pensions could provide a much-needed boost to your pension pot and income. Dyer explains: “All you need to know is the name of your employer or pension provider to track down a lost pension. If you don’t have those details, you can use the Government’s Pension Tracing Service.

“Consolidation isn’t right for everyone, so it may make sense to speak to an expert to get information on your situation, just in case you’re giving up valuable benefits or guarantees by combining pensions,” he adds.

4. Could a ‘flexi-retirement’ boost your income?

Recent research from Aviva found nearly a quarter (23%) of people with a pension are considering withdrawing money from it, or stopping paying in, or reducing the size of their contributions, to ease the pressure on their finances.

While this may ease some pressure on their finances in the short-term, it could also lead to some people needing to work for longer to build their pensions back up again.

Survey findings from abrdn, meanwhile, suggest two-thirds (66%) of adults who “retired” in 2022 will continue to do some work.

“Working in retirement could give you the peace of mind with a steady flow of income continuing, and many in our recent research admitted to wanting to continue working for the social benefits too,” says Dyer.

“Although it might not be for everyone, it could be worth considering during uncertain economic times. We’d encourage people weighing it up to speak to their employer about the options and opportunities.”

5. Consider whether financial advice could help

A financial adviser can help people to better understand and review their income and spending, as well how to make their income as tax-efficient as possible.

“There are lots of options when it comes to seeking advice, including IFAs (independent financial advisers) and also digital, affordable and accessible sources,” says Dyer.

The free Government-backed Pension Wise guidance service is also available to the over-50s. Plus, people of all ages can get money tips from the free and impartial MoneyHelper service.

The cost-of-living crisis could also push some people towards taking risks with their pension pots after being promised unrealistically high returns. Laura Newman, head of specialist advice and investment services at NatWest, says it’s important to watch out for scammers.

“It can be tempting to be attracted to investment offers that sound lucrative, but as the saying goes – if it’s too good to be true, then it often is,” Newman cautions.

“Don’t invest in anything that you don’t understand, and seek professional advice before making significant investment decisions.”



Source link

Tags: costslivingProtectretirementRiseSavings
Previous Post

Stocks to Buy in 2023: Less Than 5% Will Win

Next Post

2022 Futures Markets Year in Review | NinjaTrader

Related Posts

Disaster Prediction and Alerts Would Thrive in the Free Market

Disaster Prediction and Alerts Would Thrive in the Free Market

by Daniel Sterbuleac
August 24, 2025
0

If in January 2018 you discovered your self on the islands of Hawaii for a calming vacation, your winter break...

Recession specials could be the latest sign of deteriorating consumer sentiment

Recession specials could be the latest sign of deteriorating consumer sentiment

by Lisa Kailai Han
August 23, 2025
0

An indication outdoors Brooklyn espresso store Intelligent Mix presents a $6 gelato and espresso "recession particular."Lisa Kailai Han | CNBCAs...

Links 8/23/2025 | naked capitalism

Links 8/23/2025 | naked capitalism

by Yves Smith
August 24, 2025
0

What a stunning Little Girl! Kent animal sanctuary broadcasts start of candy snow leopard cub Each day Mail (Li) Dimension...

Stocks Rally Sharply on Dovish Fed Chair Powell

Stocks Rally Sharply on Dovish Fed Chair Powell

by Barchart
August 23, 2025
0

The S&P 500 Index ($SPX) (SPY) on Friday closed up by +1.52%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up by +1.89%,...

Debt, Destiny, and Dalio: A Review of How Countries Go Broke

Debt, Destiny, and Dalio: A Review of How Countries Go Broke

by AIER
August 24, 2025
0

Famed investor Ray Dalio makes the case in How International locations Go Broke that the US authorities is just too...

Economists disagree about everything. Don’t they?

Economists disagree about everything. Don’t they?

by Euro Times
August 23, 2025
0

When President Donald Trump fired Erika McEntarfer, America’s labour statistician, he achieved one thing supposedly uncommon: he received economists to...

Next Post
2022 Futures Markets Year in Review | NinjaTrader

2022 Futures Markets Year in Review | NinjaTrader

Alameda’s Caroline Ellison Enters Plea Agreement with DOJ

Alameda’s Caroline Ellison Enters Plea Agreement with DOJ

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I couldn’t find an ideal pet app, so I used Notion instead

I couldn’t find an ideal pet app, so I used Notion instead

August 24, 2025
Why the Donbas Is the Key to the Ukraine War

Why the Donbas Is the Key to the Ukraine War

August 24, 2025
D-St Week Ahead: Nifty to remain indecisive; time to avoid fresh aggressive buying

D-St Week Ahead: Nifty to remain indecisive; time to avoid fresh aggressive buying

August 24, 2025
Central Bank of Brazil Dismisses Strategic Bitcoin Reserve Implementation

Central Bank of Brazil Dismisses Strategic Bitcoin Reserve Implementation

August 24, 2025
The secretive life of Putin’s lover Alina Kabaeva as insider reveals sordid affair with Vlad and mystery ‘gifted’ homes

The secretive life of Putin’s lover Alina Kabaeva as insider reveals sordid affair with Vlad and mystery ‘gifted’ homes

August 24, 2025
Xai Sues Elon Musk’s xAI Over Trademark Dispute

Xai Sues Elon Musk’s xAI Over Trademark Dispute

August 24, 2025
Euro Times

Get the latest news and follow the coverage of Business & Financial News, Stock Market Updates, Analysis, and more from the trusted sources.

CATEGORIES

  • Business
  • Cryptocurrency
  • Finance
  • Health
  • Investing
  • Markets
  • Politics
  • Stock Market
  • Technology
  • Uncategorized
  • World

LATEST UPDATES

I couldn’t find an ideal pet app, so I used Notion instead

Why the Donbas Is the Key to the Ukraine War

  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In