Latest news with #LivingWageFoundation
Yahoo
a day ago
- Business
- Yahoo
How much money do you need to retire?
How much should you save for retirement? The answer is it depends on the person. One person might be looking for a retirement full of travel while another wants something altogether more modest. This brings challenges when it comes to setting pension policy and is a problem the government will need to grapple with as it gets ready to announce the second phase of its Pension Review, which will focus on adequacy. It's a piece of work that will inform thinking around the state pension as well as workplace and private provision for years to come. Setting goals too high can mean lower earners potentially oversave into their pension and risk struggling financially today. It could even put them off saving altogether. Setting the bar too low risks higher earners going through life thinking they've done enough and then getting a nasty shock. The Hargreaves Lansdown Savings and Resilience Barometer looked at four key measures of adequacy to see which might help people work out if they are saving enough. These included so-called "pounds and pence measures" which seek to put an actual figure on what retirees need to achieve pension adequacy. Pounds and pence measures include the Living Wage Foundation's Living Pension benchmark which sets an income level to meet basic everyday needs in retirement for single and coupled households. This can be seen as the absolute minimum that someone should be saving for retirement and it sets a target for pension contributions, either as a percentage of salary (12%) or a minimum cash amount (£2,950 for a full-time living wage employee). Read more: Key questions to ask yourself to plan for a comfortable retirement Hargreaves Lansdown also assessed the Pension and Lifetime Saving Association's (PLSA) minimum, moderate and comfortable living standards benchmark for single and coupled household income. The research looked at so-called relative measures, such as target replacement rates, which set an income level in retirement based on pre-retirement earnings. For instance, they may say someone needs to save enough to cover two-thirds of their pre-retirement salary. A specially designed current retirement expenditure measure was also used. This sets an income level in retirement using current retiree spending by income group, relationship status and tenure status. Analysis of these measures found using pounds and pence measures may not reflect of the current living standards of higher earners, so could lull them into a false sense of security. They can also give the impression that lower earners are falling behind, when in reality they don't need to hit higher targets to maintain their current lifestyle. As an example, the PLSA's moderate retirement income standard is set at just over £31,000 per year. There are many people, particularly on lower incomes who can live happily on less than that, whereas a higher earner would probably need far more to maintain their living standards. It's all about what your personal definition of moderate means to you. Relative measures, such as target replacement rates, better account for the ability of households to maintain living standards into retirement. This would see higher earners given a much higher target to hit. For instance, someone targeting two-thirds of their salary in retirement would need an income of £20,000 per year if they were on £30,000 pre-retirement, while their neighbour who was on £60,000 when they were working would need something closer to £40,000 per year. Read more: This under-claimed benefit could help boost your pension After careful analysis, Hargreaves Lansdown believes the best approach is to take a relative measure, such as target replacement rates, as these give a better idea of people's actual income needs in retirement. They can then set their retirement goals based on their experience rather than trying to hit a target that might not work for them. However, we also need to have a minimum income underpin such as the living pension as a bare minimum for what is needed. The key to getting a good outcome in retirement is to keep an eye on how your pensions are performing. Use an online calculator that gives you a sense of how much you are on track for. If it's enough to meet your needs then great, if not you have time to do something about it. Taking steps such as increasing contributions when you get a pay rise and tracking down lost pensions can also play a vital role in getting your retirement planning where it needs to be. Read more: How far will your pension go as retirement costs soar? What is the Pension Investment Review? How to avoid finance scams on social mediaSign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
How much money do you need to retire?
How much should you save for retirement? The answer is it depends on the person. One person might be looking for a retirement full of travel while another wants something altogether more modest. This brings challenges when it comes to setting pension policy and is a problem the government will need to grapple with as it gets ready to announce the second phase of its Pension Review, which will focus on adequacy. It's a piece of work that will inform thinking around the state pension as well as workplace and private provision for years to come. Setting goals too high can mean lower earners potentially oversave into their pension and risk struggling financially today. It could even put them off saving altogether. Setting the bar too low risks higher earners going through life thinking they've done enough and then getting a nasty shock. The Hargreaves Lansdown Savings and Resilience Barometer looked at four key measures of adequacy to see which might help people work out if they are saving enough. These included so-called "pounds and pence measures" which seek to put an actual figure on what retirees need to achieve pension adequacy. Pounds and pence measures include the Living Wage Foundation's Living Pension benchmark which sets an income level to meet basic everyday needs in retirement for single and coupled households. This can be seen as the absolute minimum that someone should be saving for retirement and it sets a target for pension contributions, either as a percentage of salary (12%) or a minimum cash amount (£2,950 for a full-time Living Wage employee). Read more: Key questions to ask yourself to plan for a comfortable retirement Hargreaves Lansdown also assessed the Pension and Lifetime Saving Association's (PLSA) minimum, moderate and comfortable living standards benchmark for single and coupled household income. The research looked at so-called relative measures, such as target replacement rates, which set an income level in retirement based on pre-retirement earnings. For instance, they may say someone needs to save enough to cover two-thirds of their pre-retirement salary. A specially designed current retirement expenditure measure was also used. This sets an income level in retirement using current retiree spending by income group, relationship status and tenure status. Analysis of these measures found using pounds and pence measures may not reflect of the current living standards of higher earners, so could lull them into a false sense of security. They can also give the impression that lower earners are falling behind, when in reality they don't need to hit higher targets to maintain their current lifestyle. As an example, the PLSA's moderate retirement income standard is set at just over £31,000 per year. There are many people, particularly on lower incomes who can live happily on less than that, whereas a higher earner would probably need far more to maintain their living standards. It's all about what your personal definition of moderate means to you. Relative measures, such as target replacement rates, better account for the ability of households to maintain living standards into retirement. This would see higher earners given a much higher target to hit. For instance, someone targeting two-thirds of their salary in retirement would need an income of £20,000 per year if they were on £30,000 pre-retirement, while their neighbour who was on £60,000 when they were working would need something closer to £40,000 per year. Read more: This under-claimed benefit could help boost your pension After careful analysis, Hargreaves Lansdown believes the best approach is to take a relative measure, such as target replacement rates, as these give a better idea of people's actual income needs in retirement. They can then set their retirement goals based on their experience rather than trying to hit a target that might not work for them. However, we also need to have a minimum income underpin such as the Living Pension as a bare minimum for what is needed. The key to getting a good outcome in retirement is to keep an eye on how your pensions are performing. Use an online calculator that gives you a sense of how much you are on track for. If it's enough to meet your needs then great, if not you have time to do something about it. Taking steps such as increasing contributions when you get a pay rise and tracking down lost pensions can also play a vital role in getting your retirement planning where it needs to be. Read more: How far will your pension go as retirement costs soar? What is the Pension Investment Review? How to avoid finance scams on social media
Wales Online
18-06-2025
- Business
- Wales Online
80,000 workers covered by new rules on hours and shifts
80,000 workers covered by new rules on hours and shifts You can now get payment for some shifts even if you don't work them Your contract will have to be more specific Hundreds of employers have signed up to a campaign aimed at ensuring that workers have secure and stable hours. The Living Wage Foundation said its scheme to tackle insecure work is gathering pace, attracting support from 237 UK employers for its Living Hours accreditation. The employers are challenging the UK's culture of precarious employment which sees 6.1 million people struggle to get by without regular hours to make ends meet, the foundation said. Living Hours sees employers commit to providing at least four weeks' notice for every shift, with guaranteed payment if shifts are cancelled within this notice period. They also provide a guaranteed minimum of 16 working hours every week (unless the worker requests fewer), and a contract that accurately reflects hours worked. Katherine Chapman, director of the Living Wage Foundation, said: 'Despite challenging economic times, it's been fantastic to see such growth in businesses signing up to Living Hours, guaranteeing secure and stable working hours to their employees. 'Reaching 200 Living Hours employers is a significant milestone and means that 80,000 UK workers are now providing stable hours, a decent contract and minimum hours, making it possible to plan a life and a budget. We hope to see many more employers follow suit and join the Living Hours movement – it's good for business and good for people.' Ceri Finnegan, senior policy and public affairs manager at the Institution of Occupational Safety and Health, said: 'We know from a survey we conducted last year that irregular and unstable working hours is an issue in the gig economy. Article continues below 'For people in the gig economy, it causes real problems. Half of the respondents to our survey said their unpredictable income causes financial struggles while their irregular working patterns mean they struggle to care for dependants or take holidays.'
Yahoo
10-02-2025
- Business
- Yahoo
Lidl GB boosts hourly pay and plans four new stores
Supermarket chain Lidl GB is set to implement a significant pay raise for its 28,000 hourly-paid employees from March 2025. Under the pay revision, entry-level wages will rise to £12.75 per hour nationwide and have the potential to reach £13.65 with tenure. In London, starting wages will increase to £14 per hour and could climb to £14.35. The new hourly rates surpass the government's National Living Wage update, set for April 2025, by more than 50p and exceed the Living Wage Foundation's newly announced Real Living Wage. The discounter's latest wage investment approaches £15m and includes increases for salaried staff across various business functions. In the year to February 2025, Lidl GB has invested upwards of £54m in employee compensation. Lidl GB chief people officer Stephanie Rogers stated: 'More households than ever before are choosing to shop with us, making Lidl the fastest growing bricks-and-mortar supermarket for well over a year. This success is largely due to our hard-working colleagues, who each play an incredibly important role in delivering quality, affordable products to communities across the country. This pay increase is just one part of our commitment to creating a workplace where everyone feels valued.' In a separate development, the retailer has announced plans to open four new stores across the UK and refurbish five existing stores, as part of the ongoing expansion strategy. The new outlets, set to open in February 2025, will create jobs and extend Lidl's market presence. Locations include Walsall, Canning Town, Preston and Wombourne. The five stores that will undergo upgrades are Blantyre, Oldbrook, Cwmbran, Wells and West Ealing. Lidl GB chief development officer Richard Taylor said: 'As we begin the new year, we're maintaining our momentum and opening nine state-of-the-art stores, delivering bigger and better shopping experiences to new communities and those we've proudly served for an average of 26 years. After a record-breaking Christmas, where millions of households turned to Lidl, these openings reflect the growing demand for our unbeatable value and quality. This is just the start – we've got more openings in the pipeline this year alone and can't wait to welcome even more customers, both loyal and new, through our doors in the weeks ahead.' Lidl's expansion comes on the heels of its most successful Christmas season yet in 2024, which attracted nearly two million more shoppers than in previous years. The holiday sales surge represented a 7% increase from 2023 and took revenues above £1bn for the first time. In November 2024, Lidl GB planned to invest a further £21bn in the UK food sector by the end of the financial year, surpassing its initial £15bn investment goal. "Lidl GB boosts hourly pay and plans four new stores " was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
