A new survey by Just Retirement has found that workers who have retired or are nearing retirement would like to receive more guidance on taxation and other issues. This can include those working through umbrella companies.
33% of retirees would like to get more information about their entitlement to benefits and pensioners on a whole are confused about taxation.
Head of research, Nigel Barlow, said that retirees face varied and complex issues and it is therefore hardly surprising that they are very interested in receiving further guidance. Many pensioners are missing out on benefits they are entitled to because the system is difficult to navigate, he added.
The group also noted that 63% of their customers research online to find the best annuity deal.
Meanwhile research from retirement specialist LV= has discovered that around 1.2 million working people and freelancers over the age of 50 may cash in their home to help fund their retirement. In fact a new acronym has sprung up for this group of people – HIPpies (Home is Pension).
Just 19% of the over 50s feel their current finances are on track to adequately fund their retirement and 41% think they may need to delay retiring for financial reasons.
19% plan on delaying retirement because an average of £21,706 has been wiped off the value of their home due to the volatility in the housing market. However, 23% still intend to use home equity as a means of funding retirement and a further 9% will take advice on doing so prior to retirement.
44% of the over 50 age group who work still have mortgage debt and 34% of the over 60s are in the same position.
The picture doesn’t look any brighter for the under 50s either. Nearly 50% of them think they are not proactively planning for retirement and although many are in company pension schemes, they would like to see their employer provide pension advice.
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Image: 3. Use your head, cut off theirs. by Hryck.
