Pension Saving

How many of us started a pension plan because we thought it was a ‘must have’? Probably not many of us.  For most people the pension plan was part of the perks of the job.

Did you know - The first UK state pension was introduced back in 1926, only 34% of men and 40% of women had a life expectancy of 65. Today. UK life expectancy is 89 for men and 90 for women. – Source ONS

Unfortunately State retirement age increases around the world are taking place as governments make attempts to reduce the pension shortfall. The UK state pension age is rising to 68. TRNC is looking to increase pension age from 50 to 60. Cyprus is having its own discussions on pension payments and pension age.

Many large corporate firms have closed their final salary pension schemes to new joiners or closed the scheme completely and changed to a defined contribution scheme.

Pensions as we know them were simply not designed for today’s longevity. A person retiring in 1940 could expect retirement to last just 7 years, now the expectation is to look forward to 25 years or more. One can argue that final salary schemes are doomed completely in their current guise. How can contributions over say a 25 year career cover retirement lasting possibly in excess of 30 years?

How many expats of working age in Cyprus are now regularly contributing to a pension plan? The message we are receiving is clear, an individual needs to take more responsibility for their own retirement more than ever before. It is not wise to rely on the state to provide you with a retirement income sufficient to ‘live off’.

So what can you do to provide for your future? Depending on your circumstances you may still be able to contribute to your UK pension. You can commence a savings plan in Cyprus. Here at Ariannol we can create a financial plan to assist you to plan for a comfortable retirement.

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