It feels like the journey from childhood to youth goes very fast but life seems to get very slow when a person gets old.
Retirement savings are one thing and now the Government officials have taken steps to protect your retirement savings so that you don’t lose out on what you deserve. The new plans introduced would protect your contributions against any financial crisis and this plan would also boost your confidence in the pension industry. Savers will benefit from the guaranteed return which is actually what they put in and they will also gain from tax breaks.
The efforts are mostly made by the Pension Minister Steve Webb. He is more concerned about the complexity of the technical terms that are used to explain pension options to the retirees and also to make things less complicated for old people. This would definitely boost everyone’s confidence as they will get back what they saved. A simple statement every year will be sent including the details of what the savers put in and how much tax relief they can benefit from; all in all a guaranteed minimum they will benefit from together with investment profit.
The vision of Mr. Webb also includes a new insurance policy that should be taken out on behalf of savers by pension funds. This insurance policy would do the job of protecting savers from encountering any loss of contributions. It also means that savers fund will stay unaffected by dropping stock markets and disintegration of companies.
Many people are appreciating the idea proposed by Mr. Webb. The reality is not everyone saves for the future and this step is to urge people to invest in their future with peace of mind. People are living longer and this means they need to be prepared for their old age rather than just trusting fate to bring something their way when the time comes. It is wise to get annuity quotes and think for the future.
This step is encouraged by many people and is thought to be a breakthrough in making savers trust pensions improve. As per the current Government plans, 11 million workers will be enrolled into a workplace pension scheme over the coming few years. Government officials are doing their best to improve the situation and regain the trust of people and their pensions.