Pension Plans and Freedoms
As the year is close to an end it is inevitable to start thinking of the end of work days and life as a pensioner. The Flooring Group has come across some troubling news about people over 50. They could potentially be putting themselves at risk of running low of money. The Retirement Advantage has been claiming in a report that a combination of longer life expectancy and pension freedoms introduced in 2015, creates a potential for the majority of pensioners a deficit in pension income later in life.
The new freedoms allow workers that are over-55 to take the entire pension pot as a lump sum. Also, the first 25% of it is tax-free and the rest is taxed as if it were income. The Retirement Advantage claims that majority of the 1,005 workers aged between 50 and 64 will be left with no sufficient income. The reason for that being they underestimate their years in retirement.
A total of 78% of those polled underestimated their own life expectancy. People tend to expect on the average guess gravitating around 82. In fact, the most male answers of people aged between 50 and 64 expect to live up to 88 and up to 90 for female ones.
Andrew Tully, The Retirement Advantage’s pensions technical director, advises that pension freedoms have given people the opportunity to devastate pension pots early. The usual scenario is often before planned retirement ages. This potentially stores trouble for the future financial state.
Against all odds, The Flooring Group sees an opportunity for additional income in the flooring industry sector. Numerous festivals and exhibitions are hosted all over the UK, presenting new products and trends almost daily. The most sought-after abilities remain the presentation skills and craftsmanship naturally obtained over the ages. Seniors, in this case, will be needed to represent the knowledge and wisdom of the trades.