2013 is the year to “get serious” about taking responsibility for funding our own retirements, asserts the chief executive of the world’s largest independent financial advisory firm, following the announcement on changes to the state pension age planned by the coalition government.
Nigel Green, CEO of the deVere Group, comments: “Under government reforms unveiled yesterday’s Mid-Term Review, the state pension age is expected to be linked to rising average life expectancy, meaning someone who is 33 now should expect to receive the state pension at the age of 73.
“This measure is designed to ease the burden on the Exchequer and is another clear indicator of how the State is struggling to cope, and will continue to struggle, with the challenges of an ageing population.Â It highlights, once again, how State support will steadily fall in coming years, meaning we must all become increasingly financially self-reliant in retirement.”
He continues: “If those who today are in their 30s, 40s and 50s are to have the kind of retirement enjoyed by previous generations, they must get serious about saving, especially as other perks such as final pension salary schemes disappear – and the New Year is the ideal time to make a commitment to plan more for your ‘leisure years’.
“By making a pledge to save more now, you’ll be less likely to be dependent on the pension that the State will be able to provide, which will be less than satisfactory anyway, and far more likely to be able to afford to stop work young enough to fully enjoy your retirement.
“With only 120 pay-days in a decade, there really is no time to lose.Â Â The time to act is now and the best way to secure financial freedom, as various studies have shown, is by working with a professional, independent financial advisor to devise a tailor-made, long-term plan.
“In other areas of life, such as sport and business, all the pros have a coach or mentor, and your retirement is too important, and mistakes are too costly, not to seek advice from a ‘financial coach.’”