Tag Archives: retirement

News, Pensions

Triple lock won’t save the ‘Golden Years’, Warns Kinesis

Brits must look for alternative assets as retirement wealth comes under threat

Financial security is the bedrock of a happy retirement – referred to as the ‘Golden Years’ – but the changing economic landscape is currently threatening people’s retirement wealth.

Although the government recently increased the state pension by 3.1%, it is actually a fall in real terms and will not provide pensioners with what they need. Following this increase, the full basic state pension is £185.15 per week which is a fraction of the Living Wage at £380 per week*. With the UK already on the cusp of a pension poverty crisis, and energy prices rising by an average of 54%, a state pension simply isn’t enough to make retirement as golden as it should be.

Most of the UK now rely on a private pension to set them up for the golden years, but these come with their own challenges, and the outlook is extremely uncertain. Not only are they not protected by the triple lock, but pension funds are struggling to counterbalance key inflation levels. Between 2020 and 2022, UK pension funds grew an average of 7.2%, barely beating UK inflation which currently sits at 7%.** Pension funds have had a poor start to 2022 as the war in Ukraine has sent shares and bonds plummeting. This means that private pensions are no longer the safe option they once were to bolster state contributions.

Many are looking for alternatives, with almost 60% of investors wanting digital assets in their retirement plans.*** While this is a step in the right direction, the same survey highlighted that some digital assets, particularly cryptocurrencies, are too volatile to play a long-term role in people’s pension plans.

Kinesis is highlighting that there is a safer, more stable alternative – gold. New technologies are enabling gold to be part of retirement plans, meaning that retirees can not only benefit from a historically stable asset which has been proven to maintain its value over time, but Kinesis’ industry-first fee-sharing yield on gold means they can also see their wealth grow in real terms.

 

Jai Bifulco, Chief Commercial Officer of Kinesis Money, says: “People’s hard-earned wealth is currently under threat, but retirement savings especially. Many are currently sticking to the status quo and do not realise the impact this could have on their wealth in later life.

“It’s great to see some people seeking alternatives, like digital assets. But cryptocurrencies are not conventionally known to be a source of stability and may not provide the steady interest needed to build a retirement nest egg.

“There are, however, other paths people can take to protect their wealth in preparation for later life. As a starting point, individuals can limit the amount of money they store as cash savings, and begin to explore assets that are recognised for their price stability. Gold offers a proven capacity to store value over time and is now more accessible than it has ever been, through its digitalisation. Gold has shown resilience during notable economic crashes, more so than stocks and bonds, and brings with it a track record for value appreciation, seen over the past 50 years. Better yet, you can now also earn a yield on gold, providing a steady and stable return for those sacred golden years.”

 

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* https://inews.co.uk/inews-lifestyle/money/pensions-and-retirement/state-pension-how-much-what-2022-increase-means-how-check-explained-1568395

** https://moneyfactsgroup.co.uk/media-centre/consumer/pension-funds-and-annuity-income-returns-growth/#:~:text=The%20volatility%20of%20pension%20funds,will%20vary%20by%20individual%20fund.

*** https://www.planadviser.com/nearly-60-investors-surveyed-want-digital-assets-retirement-plans/

News

Independent for longer – new report exposes desire for independence and community in later life

The Fragmented UK report by Anchor, England’s largest not-for-profit provider of care and housing for people in later life, calls for an open and honest National Conversation about people’s desires and expectations in later life.

 

Expectation versus reality

Anchor’s research reveals a disparity between what younger people believe their parents want in terms of care in later life and what older people themselves say. Today, over half (54%) of 18-34 year olds and 42% of those aged 35 to 54 believe their parents will want family members to care for them in later life.

Yet only 16% of over 55s say they will want this to happen. Anchor’s research found that older age groups are more likely to cite “not being a burden” on family as a key part of their sense of independence.

 

Supply and demand chasm

While specialist retirement housing and care can play a significant role in supporting people to live independently for longer, there is low awareness of housing options for people in later life among the public. Anchor’s research shows 80% of people do not fully understand the options available to them. It is vital to increase awareness of these options to ensure people can make an informed decision. Anchor’s research identifies that, when asked what independence means to older people, retirement communities could be an effective way to meet their needs. Over 55s highlight four key areas which they associated with independence: making their own decisions = 82%, having control over their own financial decisions = 74%, living in their own home = 75%, and being able to pursue their current way of living = 69%.

With 35% of over-55s saying they would be very likely or quite likely to consider specialist retirement housing, and as the awareness of later life housing options increases, demand will continue to rise. The APPG on Housing & Care for Older People estimates a shortfall of 400,000 older people’s housing units by 2030[1]. Therefore, it is vital that a long-term strategy is put in place to address the gap.

 

Quality time together

Time spent with family, friends and local communities is invaluable in helping ensure a good quality of life. Anchor’s research reveals that 36% of young people (18–34) are now thinking about moving closer to their extended family – citing the pandemic as the primary reason.

The survey uncovered that as a nation, we value regular contact, which goes beyond special occasions, and simply spending time together at home.

Greater provision of specialist housing for people in later life across the country is key to enabling families to spend more quality time together in a way that suits their individual and group needs.

 

Fear of loneliness conquered by community

The COVID-19 pandemic highlighted the fear of loneliness in later life. Even before the pandemic, levels of loneliness among older people have been cause for concern. Loneliness can have far-reaching consequences for mental and physical health – which in turn can impact already-stretched public services (lonely people are 1.3 times more likely to experience an emergency hospital admission[2]).

Anchor’s research reveals that nearly half of the public (45%) believe they will get lonelier as they get older. Even younger people are concerned about loneliness in later life, with 50% of under-55 year-olds expressing this fear.

Being involved with your local community can help alleviate loneliness. Anchor’s research shows that over half of the nation (55%) worry that people’s sense of community is disappearing.

Being part of a community is one of the key reasons many older people seek to move into specialist housing in later life. Brian Branson (78), who lives in Anchor’s Hampshire Lakes in Yateley, said:

“It’s a close-knit community. There is always someone to talk to and something to do, so I spend a lot of time with my neighbours. From Friday happy hours to themed dinner and drinks, I also enjoy attending regular events alongside my neighbours. I love the themed nights in particular: we once had a 60s-themed evening where I dressed up as Elvis Presley!”

“My sister-in-law Meryl was struggling with the upkeep of a four-bedroom house. She saw how much I was enjoying living at Hampshire Lakes and bought a place a couple of years after I did.”

 

The way forward

In the People at the Heart of Care: Social Care Reform White Paper, published in December 2021, the Government put a heavy focus on improving housing options for older people. This commitment has been echoed by the Levelling Up White Paper, published in February 2022, where the Government has committed to creating a task force focussing on housing for older people. These pledges, and the evidence in the Fragmented UK report, represents a clear opportunity to ensure housing forms a major part of the solution to address issues faced by our ageing population and the wider society.

 

Commenting on the report, Jane Ashcroft CBE, Chief Executive at Anchor, said: 

“Our Fragmented UK research shows how important independence and community are to older people. Specialist housing options can give people access to both, and we’ve seen demand rising significantly in the past few years.

“The Government’s commitment to a task force focussed on housing for older people is an important step in the right direction. We are now calling for the task force to be launched at the earliest opportunity to fully engage with all stakeholders including providers; unlocking investment and driving development to create more homes where people love living in later life.

“As our population ages, supply will continue to struggle to meet demand. It’s imperative that the barriers to development are addressed, so that everyone has the opportunity to live where they want and how they want.”

In response to the findings, Anchor is also calling for a National Conversation for all generations to talk about ageing and later life options.

 

Jane Ashcroft continued:

“We need to encourage families to discuss options available and choices to be made when it comes to housing, helping people make decisions early and plan better.

“Only through an open and honest conversation can we ensure that the needs and expectations of older people are properly understood, and that young people don’t fear getting older but are supported to better understand what can be possible in later life.”

[1] APPG on Housing and Care for Older People, Housing for people with dementia – are we ready? (2021): HCOP_APPG_Dementia_Housing_and_Care_Inquiry-LowRes.pdf (housinglin.org.uk)

[2]Social Finance, Investing to Tackle Loneliness (2015):  https://www.socialfinance.org.uk/resources/publications/investing-tackle-loneliness-discussion-paper

News

Retiring former PKF Smith Cooper Partner was ‘one of the foundations upon which the firm was built’

Respected former Partner and Audit Director Janet Morgan retires after dedicating 20 years of her career to PKF Smith Cooper.

 Janet’s illustrious career began back in 1984, when she qualified as a Chartered Accountant for a sole practitioner. This was followed by a position at Deloitte Haskins & Sells and PriceWaterhouseCoopers.

In February 2002, Janet joined PKF Smith Cooper in a Senior Manager role within the audit and assurance department, quickly being promoted to Partner.

During her time with the firm, Janet held numerous voluntary and charity positions with The University of Derby, Derby College, and the RSPCA.

Of her time at PKF Smith Cooper, Janet commented: “During my 20 years with the firm, I’ve been lucky to have had the pleasure of working with lots of amazing people and clients, many of whom are still with the firm. I would just like to thank all of these people for making my time with PKF Smith Cooper such a fun and happy one.

I have always felt proud and privileged to say I was part of PKF Smith Cooper, and I wish the firm every success in the future.”

Senior Partner, David Nelson, said: “I’d like to congratulate Janet on her retirement and the fantastic career she has had. She is one of the foundations upon which the modern PKF Smith Cooper business was built and has enjoyed excellent relationships with her colleagues and clients throughout.

“I’ve enjoyed working with, and learning from, Janet and wish both her and husband, Ian, every future success for a long and happy retirement.”

News

A Sad Farewell After 26 Years at Checkprint

Loyal and much-loved employee from Hinckley, Carol Burke is sadly retiring from her role of Senior Customer Service Representative at Checkprint – part of the TALL group of companies, after 26 years of dedicated service.

Carol, joined Checkprint in 1994 and has held a number of customer service roles most recently providing invaluable support to the Key Account Managers.  Throughout her time at the company, she has demonstrated an unswerving commitment to providing a first-class customer experience.

A socially distanced celebration was held for Carol with a Christmas theme where she was presented with a book about her Checkprint journey in a ‘This is Your Life’ style.  In her retirement she plans to spend time with her husband and grandchildren, and continue to make cakes for her ‘Checkprint second family’.  She will also be available to offer continued support to the company if required.

Nicky Dunn, Customer Service Manager at Checkprint, said: “Carol’s retirement will leave a sad hole in all of our lives.  She has demonstrated fantastic dedication to Checkprint and always prioritised our customers throughout her career.  As the ‘Office Mum’ she will be greatly missed by all the team.  We wish Carol lots of luck for the future.”

Martin Ruda, TALL Group Managing Director added, “Carol has been an exemplary team member for all these years, and the business would not have been what it is today without her. We wish her a very happy retirement.”

FInance, Finance and Banking

Positive outlook for Welsh finance business following North West acquisition

A TRUSTED financial advisory firm is expanding into the North West and looking to grow its workforce following a successful acquisition.

In less than three years, Celtic Financial Planning has gone from three to nine staff delivering independent financial advice on a wide range of themes, from mortgages and insurance to pensions and investment strategies.

Led by directors Rob Lewis and Nigel Dale, the multi award-winning Mold company serves North Wales but has clients across the UK, from London to the Isle of Arran.

And in past weeks they have completed the takeover of the financial advisory arm of Widnes-based Halton Insurance Services, a move that will bring a further £20m of funds and up to 100 customers under their management.

Rob and wife Ella – also part of the team – wanted to bring a “family feel” to what is a traditionally antiquated arena, a point reinforced by alarming new figures revealing more than half of independent financial advisers operating in the UK today will retire within the next 10 years.

They have done that while securing 250% growth since launching in 2018, and there is still more to come.

“We always wanted to do things differently, to be a breath of fresh air in this industry with a more digital, technological approach,” said Rob.

“We have done that, but also retained our core beliefs, which is in treating clients the way they deserve to be treated, with honesty and transparency, as if they were a part of the family.”

He added: “That has served us well; in the beginning it was just Nigel, Ella and myself, and now we have a dynamic team of nine.

“With the exciting acquisition of what is a reputable, established firm in the North West, we are recruiting for two new members of staff and will look to hopefully add two more later in the year.”

Rob, 33, had dreams of becoming an architect as a young boy, but after joining a mortgage lender straight out of high school he designed and built an alternative career for himself.

Now marking 15 years in the financial sector, he gives back to the community as part of the North Wales Social platform and is the driving force behind the Celtic Community Network, bringing businesspeople together to share best practice, advice, and guidance, while promoting each other’s services.

Celtic Financial Planning is also key sponsor of the Cheshire and North Wales Law Society, and, during the first Coronavirus lockdown, purchased a 3D printer and began manufacturing and distributing PPE (personal protective equipment) to local schools and frontline workers.

With further expansion plans in the pipeline, he says they will continue to work through the pandemic as safely and securely as possible, while trying to support other companies when they need it most.

“Like every other industry we have had our challenges, but you just have to keep going, think outside the box and do the best you can,” he said.

“That way of thinking is going to be needed in the future, which is why we are working with others in this field to try and attract and educate the next generation of financial advisers.

“Over the next 10 years, more than half of current IFAs will be retiring; demand for advice is going up and the number of people giving advice is going down, so it’s a real crisis.”

For more information from Celtic Financial Planning, visit www.celticfp.co.uk and follow them on social media at @celtic_FP.

Conwy, Leisure, Retirement

North Wales retirement coach supporting people on road to their golden years

MORE than 40 years as a senior HR leader saw Nigel Evans support hundreds of colleagues on the road to retirement.

But when it came to enjoying his own withdrawal from professional life, the 64-year-old found the transition to be more difficult than he ever imagined.

Having returned to North Wales from Hong Kong and a leading role in human resources at a company employing 40,000 staff across Asia, the dad-of-three decided the time was right to leave work behind and begin a new journey.

Three years later Nigel “hit a wall” and decided to launch Riverbridge Coaching, a business focused on helping people with their retirement plans, a process most assume is pretty simple.

“That often could not be further from the truth,” said Nigel, who lives in the Conwy Valley with his wife Yvonnie.

“The adverts and photos we see of happy silver-haired retirees skipping along a beach or doing their daily workout do not reflect the reality.

“As I found myself, there is a honeymoon period immediately after you retire, which is great. You do the things you want to do, travel, spend time with famil and enjoy pastimes and hobbies.

“But eventually you hit a wall and realise that 20-30 years is a lot of leisure time to fill.”

The financial side is what most prospective retirees are concerned with. But as Nigel discovered, the value of physical, mental and spiritual well-being as well as social support are far more crucial considerations.

“More important than a financial plan is a non-financial plan that looks at how you replace work,” he said.

“People don’t realise the value that work provides them. Structure, purpose, routines, deadlines, social interaction and a sense of accomplishment were your day to day life for decades.

“It’s almost a sense of loss, and you question whether you are contributing to society.

“I remember sitting in the kitchen and hearing the clock tick, a sound I had never noticed before.

“I am still full of energy and have so much to give, which is why I started coaching.”

He added: “This myth that retirement is easy and stress free is just that – a myth.

“Research reveals around 55% of people get to where they want to be and are content, but that leaves a huge amount of people who don’t, those who struggle with mental health issues, the financial burden, anxiety and even suicide because they cannot replace what they had.

“Many people lose their identity when they stop working, and helping them discover a new one is often a central theme in coaching conversations”

The latter part of Nigel’s role in the Far East was as an executive coach, and he has brought those skills into this new venture.

He partners with clients to find “creative solutions” to the retirement challenges they are facing and helps them put realistic action plans together.

“I always conduct a complimentary discovery session first so we can explore what issues they are facing,” said Nigel.

“Some people get to solutions and action plans in a few hours – whilst other want to reflect and explore issues over a longer period of time.

“The perception is that coaching is purely advice and guidance, but it’s not like that. You have to get your own solutions because the best answers are yours – ultimately you are the expert on you.”

He added: “I sometimes ask the client to envision what the perfect day in retirement would look like, then the perfect week and the perfect month. Very often this helps people hone right down to what counts and helps to clarify what is important to them about retirement.”

So, what does the perfect day in retirement look like for Nigel? And has he found a new identity?

“My personal mission is to be present and live in the day,” he said.

“I have a wonderful family who I am lucky enough to be able to spend lots of time with. I play the piano, keep fit and am studying for a degree in Psychology and Counselling having achieved my coaching credentials in the past couple of years.

“Much of the remaining time is spent on what I love to do most – inspiring people to retire well and to the best years of their lives.

“Put simply, retirement should not be a struggle, not after decades of hard work. You can still enjoy your life and pursue your dreams. There are many things I want to go on and do, and I know many people out there feel the same.”

For more information and to contact Nigel, visit the website: www.riverbridgecoaching.com

FInance, News

SEED Group Partners with ABAKA to Bring the World’s First AI-Powered Digital Saving and Retirement Platform to the UAE

SEED Group, a subsidiary company of The Private Office of Sheikh Saeed bin Ahmed Al Maktoum, today announced a strategic partnership with ABAKA, the global leader in digital saving and retirement enterprise SaaS solutions, that will allow United Arab Emirates (UAE) financial institutions to integrate ABAKA’s Artificial Financial Intelligence™ technology platform into their core business processes to digitize customer experience, and improve financial education, saving and retirement planning for its residents and citizens.

Considering the huge challenge that the saving and retirement sector faces to produce better outcomes for workers who constantly have to keep up with their savings when there are still limited financial options, ABAKA is the world’s first AI-driven platform that has been developed.

ABAKA streamlines its digital services through AI technology. ABAKA has built the economy applications and seamless data exchange platform enabling FIs to access customer data, build insights and intelligence through conversational AI and hyper-personalised behavioural nudges. It provides digital solutions covering retirement (accumulation, at-retirement and decumulation), banking (PFM, digital savings), wealth and advisory (goal-based investing, data aggregation, advisor lead generation tools and business process automation).

“We are honoured to confirm our new strategic partnership with SEED Group and The Private Office of Sheikh Saeed bin Ahmed Al Maktoum to bring our AI-powered digital solutions to the UAE for the first time,” said Fahd Rachidy, founder and CEO of ABAKA. “The UAE is facing the same saving and retirement challenge as many countries around the world: consumers are not saving enough, most do not have a clear financial plan for later life and many cannot access financial advice.

“SEED Group shares our vision to help engage more people in financial planning and enable everyone to have a financially secure future. We’re delighted to be working with them towards achieving this goal.”

The National Bonds Corporation’s 2018 Savings Index reveals that more than eight out of 10 people in the UAE claim that they are not saving enough for themselves. With support from the UAE government for the development of initiatives for the “responsible and efficient” adoption of AI in the private sector, as evidenced by the UAE AI strategy, and the launch of the Think AI program in 2019, ABAKA is the leading answer to help everyone make more informed decisions with their finances.

“The utilization of artificial intelligence in the UAE is one thing, financial planning is another,” said Hisham Al Gurg, CEO of SEED Group and The Private Office of Sheikh Saeed bin Ahmed Al Maktoum. “More than 200 nationalities live in the UAE, but the majority still are almost clueless about planning their retirement. We are confident that through ABAKA’s lead in this regard, the numbers will improve over the next few years, and we are very excited about being part of this mission and helping everyone, citizens and residents, achieve their long-term financial objectives.”

Not so long ago, in December 2019, ABAKA raised $6.5M in Series A funding round from Thames Trust, Ace&Co, and Downing Ventures. To date, the London-based company has raised a total of $10 million in investments, one of the biggest and notable investments in the space of saving and retirement technology.

Creative News, Engagement, News, Pensions

Aegon personalised pension video summaries scoop award for innovation

Aegon’s unique video summaries were recently recognised in this year’s Financial Services Forum Product and Service Innovation Awards, securing the company the top spot in the Marketing and Communication category.

The animated video pension summaries have transformed the average pension communication for members of Aegon’s workplace pensions, featuring real time pension information such as fund values and contributions levels in a 3 minute video summary which provide members with a timely picture of their retirement savings position.

An example video can be found here: http://www.aegon.co.uk/content/dam/ukpaw/hidden/Workplace/video-summary-30-45.mp4

Members can access the videos online at any time – but videos are also delivered by email ahead of the paper statement that is linked to a member’s renewal date. Developed using a matrix of data and gamification techniques, the videos also feature the latest behavioural science insights to shape the design, language, sounds and features, ensuring members are fully engaged.

Videos contain 10 sections that are completely personal to the member and references lifestyle targets rather than setting retirement goals. These include age, value and investment status, with more than 3 million unique script and scene variations.

Digital pension summaries are just one of many ways in which Aegon is adapting its proposition and communication to meet and exceed customer expectations.

This most recent award follows recognition in a report by NextWealth that showed Aegon as one of the leading providers in the adoption of digital processes and the use of esignatures.

The analysis by NextWealth looked at 85 processes across 20 platforms to benchmark adoption of digital processes and the use of esignatures.

Mark Till, Managing Director, Digital Solutions at Aegon, comments:

“Digital communications are creating opportunities to engage people in ways few would have thought possible just a few years ago. Through clever use of customer data, we have been able to personalise communications in a way that really cuts through and which spells out how people can make the most of their finances.

“Video summaries are a great example of the type of innovation we are deploying across our business seeking to work in partnership with employers and advisers to transform the customer experience. We are at the beginning of this journey and have a number of exciting developments planned which we believe will transform the financial wellbeing of the UK.

News

Home and pet sitters wanted in Scotland – An ideal role for retirees wanting flexible employment in 2019

National home and pet sitting company, Homesitters Ltd is seeking homesitters in Scotland to look after people’s homes and pets when they go on holiday to meet growing client demand.

Home and pet sitting is a role that is increasingly popular with older people looking to continue working flexibly during their retirement.

A recent survey by YouGov for Age Scotland[i] highlighted that 44 per cent of Scots said they were planning to work into their late 60s and beyond to enjoy a better retirement lifestyle. More than a fifth also cited enjoying the social side of working and 19 per cent worried they would get bored or lonely at home.

Alan Irvine, Managing Director of Homesitters Ltd says this trend is leading to older people seeking out alternative types of employment such as home and pet sitting.

Mr Irvine says, “Home and pet sitting suits active retired people in their 50s, 60s, and 70s who love animals but want a flexible form of employment. The role offers the chance for people to travel throughout the UK, stay in fantastic homes in rural and urban locations and care for a wide variety of pets.

“It’s a sociable role, plus it’s good for physical health. Many of our homesitters look after dogs that need walking. Being in new places also encourages people to go out and about exploring. Our homesitters can choose to do as many assignments as they wish each year, fitting around other commitments.

“Homesitters receive a modest remuneration to supplement a pension, a daily food allowance and travel costs to and from the homesit are reimbursed. People can also make savings, especially in the winter, on their own utility bills if they spend a lot of time away on assignments,” adds Mr Irvine.

One Scottish couple who have been enjoying homesitting for seven years is Iain and Helen Miller, both in their 70s and from Glasgow, who have travelled around Scotland looking after people’s homes and pets.

Being able to spend time with animals was the biggest attraction of the job for the Millers. Home sitting allows them to enjoy spending time with animals without the responsibility of having a pet of their own.

Iain says, “We love all kinds of animals, and one of our favourite assignments was staying in a home with a full menagerie. There were dogs, cats, guinea pigs, chickens, tropical fish, a pygmy hedgehog and even a tortoise.”

Iain and Helen’s assignments have all been in Scotland and they enjoy travelling the country from St Andrews to the banks of the River Clyde, exploring beautiful areas they may not have visited before.

Helen says, “One of our homesits was located on the Gairloch and the views from the house were stunning. The weather was lovely and one day we were lucky enough to see a nuclear submarine going on patrol down the loch from its base in Faslane.

“Another homesit was near beautiful Cramond Beach, just outside Edinburgh, so we were able to take the dogs for lovely long walks along the beach. We were looking after an Irish Wolfhound and a Rough Haired Dachshund – one is a very large dog and the other is very small so we often turned heads!”

Iain and Helen love home and pet sitting and would recommend it to others keen to spend time with animals and add a bit of adventure into their lives.

Iain says, “We’d highly recommend Homesitters and would advise others considering the role just to go for it – and enjoy. The company is very professional and nothing is too much trouble for them. It’s an ideal way to keep active in retirement.”

Homesitters Ltd is currently on a winter recruitment drive to recruit enthusiastic and reliable people throughout Scotland to join its expanding team of homesitters.

For more information on becoming a homesitter and to apply please visit: www.homesitters.co.uk

[i] https://www.bbc.co.uk/news/uk-scotland-41775557