Latest news with #SusanHope
Yahoo
7 days ago
- Business
- Yahoo
‘Critical' need to close the UK's self-employed pensions gap
The self-employment pensions gap must be tackled to help address wider retirement issues, Scottish Widows is urging. Susan Hope, a retirement expert at the pension provider, said flexibility is 'key for self-employed people' when building a retirement pot. Lloyds Banking Group, which includes Scottish Widows as a brand, recently worked with Nest Insight to explore 'autosave' options with a small group of self-employed people. Those behind the study said initial responses to the idea were positive and suggest it is worth further exploration of an autosave feature within banking platforms and self-employment software. Ms Hope said: 'Closing the self-employed pensions gap in the UK is critical to cracking the wider pensions crisis – more than half of self-employed individuals are on track for poverty in retirement, compared to just 25% of full-time workers. 'Flexibility is key for self-employed people and our work with Nest allowed us to test models with this built in.' Scottish Widows previously commissioned YouGov to carry out research among more than 5,100 people across the UK in January and February. Research indicated that 39% of self-employed people are not saving enough for retirement, and 23% are not saving anything at all. Under automatic enrolment, workers who have an employer are placed into a pension scheme, provided they meet certain criteria. As well as their own pension contributions, employees get the benefits of employer contributions into their pension pot as well as tax relief. Here are some general tips from Ms Hope for self-employed people looking to build a pension pot: 1. Try starting small. Self-employed people often face irregular income, making it challenging to save consistently. Some people could consider starting with small, regular contributions to a personal pension, also known as a 'ready made pension'. People could try setting up small monthly payments and topping them up at the end of the tax year when they have a clearer picture of their finances, helping to give flexibility during more challenging times, Ms Hope suggested. 2. Consider whether a Lifetime Isa could be useful. People can use a Lifetime Isa for their first home or their retirement savings. Lifetime Isa savings can be topped up with a bonus from the Government. There may be withdrawal penalties to consider though, if anyone is withdrawing money for reasons other than their first home or their retirement. 3. Make the most of tax relief. Contributions to personal pensions such as sipps (self-invested personal pensions) come with tax relief. Some people may also want to consider taking financial advice. Individual circumstances will vary.
The Independent
13-07-2025
- Business
- The Independent
‘Critical' need to close the UK's self-employed pensions gap
The self-employment pensions gap must be tackled to help address wider retirement issues, Scottish Widows is urging. Susan Hope, a retirement expert at the pension provider, said flexibility is 'key for self-employed people' when building a retirement pot. Lloyds Banking Group, which includes Scottish Widows as a brand, recently worked with Nest Insight to explore 'autosave' options with a small group of self-employed people. Those behind the study said initial responses to the idea were positive and suggest it is worth further exploration of an autosave feature within banking platforms and self-employment software. Ms Hope said: 'Closing the self-employed pensions gap in the UK is critical to cracking the wider pensions crisis – more than half of self-employed individuals are on track for poverty in retirement, compared to just 25% of full-time workers. 'Flexibility is key for self-employed people and our work with Nest allowed us to test models with this built in.' Scottish Widows previously commissioned YouGov to carry out research among more than 5,100 people across the UK in January and February. Research indicated that 39% of self-employed people are not saving enough for retirement, and 23% are not saving anything at all. Under automatic enrolment, workers who have an employer are placed into a pension scheme, provided they meet certain criteria. As well as their own pension contributions, employees get the benefits of employer contributions into their pension pot as well as tax relief. Here are some general tips from Ms Hope for self-employed people looking to build a pension pot: 1. Try starting small. Self-employed people often face irregular income, making it challenging to save consistently. Some people could consider starting with small, regular contributions to a personal pension, also known as a 'ready made pension'. People could try setting up small monthly payments and topping them up at the end of the tax year when they have a clearer picture of their finances, helping to give flexibility during more challenging times, Ms Hope suggested. 2. Consider whether a Lifetime Isa could be useful. People can use a Lifetime Isa for their first home or their retirement savings. Lifetime Isa savings can be topped up with a bonus from the Government. There may be withdrawal penalties to consider though, if anyone is withdrawing money for reasons other than their first home or their retirement. 3. Make the most of tax relief. Contributions to personal pensions such as sipps (self-invested personal pensions) come with tax relief. Some people may also want to consider taking financial advice. Individual circumstances will vary.
Daily Mirror
18-06-2025
- Business
- Daily Mirror
'I'm £9,000 a year better off thanks to work scheme - more people should use it'
Salary sacrifice allows you to exchange some of your salary for a non-cash benefit, such as pension contributions - and it can actually increase your take-home pay as it reduces how much tax you pay One man has explained how he has boosted his pension pot by around £9,000 a year by opting into a workplace scheme. Caleb uses salary sacrifice to exchange some of his salary for pension contributions. As well as increasing your retirement pot, salary sacrifice also reduces your tax bill, as the deduction is taken from your gross salary. This means you may find your take-home pay actually goes up. However, you should be aware of the potential impactions of salary sacrifice if you are taking out credit. For example, mortgage lenders often calculate your affordability based on your gross salary, so a lower salary might reduce the amount you can borrow. Caleb said: 'I've opted into a salary exchange scheme primarily for the pension tax benefits and National Insurance savings. It's been a smart move financially, and I've noticed the long-term gains in my pension contributions without affecting my take-home pay much. 'The opt-in process was fairly straightforward. My employer had clear steps laid out, and the HR system made it easy to enroll. There were no major complications. 'Our HR team provided a simple guide explaining how salary exchange works and the benefits. They were also available for any questions, which helped clarify the impact on payslips and pension growth.' New figures from Scottish Widows show workers could boost their pension pots by £41,200 by opting into salary sacrifice. Someone with an average salary of £37,430 would increase their pension pot by £528 a year. For a worker aged 30 and retiring at age 67, and assuming 5% investment growth, this would add £41,200 to their pension savings by the time they retire. Susan Hope, Scottish Widows Retirement Expert, commented: 'Questions loom over the future of salary exchange, despite it being the best way to maximise workers' retirement savings. 'Cutting or abolishing it completely would ignore the long-term boost it delivers to people's finances. Our data shows not only the positive impact on people's take home pay, and pension wealth, but also the halo effect it has on people's financial confidence. 'The term 'salary sacrifice' is a red herring because neither the employer nor employee has to give anything up when they take advantage of this scheme. It's truly a win win. 'The key to unlocking additional savings into pensions is awareness, and this needs improving so schemes like salary exchange can positively impact more people's finances. We should be empowering our workforce's future and salary exchange is one way to do this.'
Daily Record
13-06-2025
- Business
- Daily Record
Retirement expert shares simple way employees can boost pension pots by over £41,000
Only 35 per cent of UK workers are enrolled in their company's salary exchange scheme. Workers could boost their pension pots by £41,200 - more than a year's average salary - by opting into their employers' salary exchange scheme, according to new figures from Scottish Widows. Average salary workers - taking home £37,4301 annually - could increase their take home pay by £150 a year, simply by opting into their employers' salary exchange scheme. If this extra cash is then redirected into their pension pot, alongside the savings the employer makes through reduced national insurance contributions, their pension savings would be boosted by £528 a year. For a worker aged 30 and retiring at age 67, and assuming 58 per cent investment growth, this would add £41,200 to their pension savings. Those opting in a decade later, at age 40, would see a £24,500 boost to their pension pot. With the future of salary exchange under the spotlight following recent HM Revenue and Customs (HMRC) research, Scottish Widows' analysis emphasises the positive boost that these schemes have on workers' financial empowerment. Among those workers enrolled in salary exchange, 79 per cent said it makes them feel more confident about maximising their pension savings and being tax efficient when managing their money (77%). An encouraging three-quarters (74%) believe the scheme helps ensure their money is working as hard as possible, and the same proportion (74%) say it boosts their productivity at work, knowing that they are financially secure. However, just a third (35%) of workers surveyed are already enrolled in their company's salary exchange scheme, so there is still a significant gap to bridge. A fifth (20%) of workers don't even know if their employer offers salary exchange Often misinterpreted, salary exchange - also known as salary sacrifice - is an arrangement where employees exchange part of their salary in return for an employer pension contribution. Because the salary is being exchanged rather than paid directly, it benefits both employers and employees as neither pays National Insurance Contributions on the amount exchanged. The exchanged amount can then be paid into the employee's pension plan as an employer contribution - creating tangible savings for both employee and employer, while boosting workers' retirement savings. Commenting on the findings, Susan Hope, Scottish Widows Retirement Expert, said: 'Questions loom over the future of salary exchange, despite it being the best way to maximise workers' retirement savings. Cutting or abolishing it completely would ignore the long-term boost it delivers to people's finances. Our data shows not only the positive impact on people's take home pay, and pension wealth, but also the halo effect it has on people's financial confidence. 'The term 'salary sacrifice' is a red herring because neither the employer nor employee has to give anything up when they take advantage of this scheme. It's truly a win win. 'The key to unlocking additional savings into pensions is awareness, and this needs improving so schemes like salary exchange can positively impact more people's finances. We should be empowering our workforce's future and salary exchange is one way to do this.'
Scottish Sun
31-05-2025
- Business
- Scottish Sun
How to protect your pension after divorce – everything you need to know
SPLITTING UP How to protect your pension after divorce – everything you need to know DIVORCE is one of the most stressful experiences you can go through in life, not least because of the debate over how to split your finances. While the family home is often given careful consideration, pensions are a vital factor often overlooked. Advertisement But this can have severe consequences later down the line. Pension savings can be worth hundreds of thousands of pounds, yet, all too often these cash pots get ignored when it comes to divorce, and it's usually women who miss out. Their pension pots are often smaller than men's due to taking career breaks to look after children or working part-time. The oversight costs women more than £77,000 on average when it comes to retirement, according to research by provider Scottish Widows. Advertisement Yet, more than more than 60% of divorced women didn't go through pension assets during a divorce. Susan Hope from Scottish Widows, says: 'The main reason women still lose out is because they simply are not aware of the potential value and that pensions should be included in the family assets. 'Divorce can be an extremely stressful and intense time. It can be easy for pensions to sink down to the bottom of the priorities, especially if it's a DIY divorce. She added: "Some may prioritise keeping the family home or taking more cash from a sale, but without seeing the full picture.. Advertisement "This could be at the expense of a fair pension share, so it's important to have the right conversations.' Could you be eligible for Pension Credit? HOW TO DIVIDE A PENSION There are a few different ways to split a pension. It is important to note the value of the pension may be offset against other assets. For example, one person could agree to take a bigger share of the home instead of any of the other person's retirement pot. Advertisement Or the pension could be shared with an agreed percentage transferred to the former spouse. In this case, it's a clean break, according to Dean Butler of pension firm Standard Life. He adds: 'On the downside, it can be quite complicated to set up and needs an order from the court.' Another alternative is called a 'pension attachment order', which is where one person agrees to pay a portion of their pension income to the other, but only when it starts being paid. Advertisement Dean says: 'This also requires a court order and the first person retains quite a lot of control of when and how the pension is used, and payments will stop when they die.' WHAT TO DO WITH CASH After a divorce, you should always take stock of how much you'll need for retirement and whether you have enough. Rachel Vahey, head of public policy at AJ Bell, said:'You may find the income you expected to get at retirement has taken a hit. 'Whether your ex-partner kept the bigger proportion of the pension or you shared some of your retirement savings with them, now is the time to think about how to boost your pot.' Advertisement You can go through a three-step online pension check on the government's website to check if you are on the right track for a comfortable retirement. If you are falling short, look at what your employer can offer. It could be worth upping contributions through a workplace scheme, especially if your employer will match the contribution. Even increasing savings by a small amount can make a big difference in the long term. If you do receive a share of a pension pot, you'll need to think about whether it's in the right place. Advertisement You could save fees by combining it with any other pensions. Having your cash in a single and bigger pot also makes it easier to manage. CHANGE YOUR EXPRESSION OF WISHES Many people don't realise that pension assets are not usually covered by your will. And if you die before taking a private pension, your provider will then decide where the cash goes. This is usually done based on an 'expression of wishes'. This is a form you'll usually fill out when setting up the savings pot. Advertisement Crucially, if you gave your spouse's name when you set up the account, you need to remember to change this when you divorce – assuming you no longer want them to receive the benefits. Ed Monk, associate director at savings provider Fidelity International said: 'If your life circumstances change and you're seriously considering ending your marriage or civil partnership.. "It's important to change your expression of wish to reflect any change in who you want to receive your pension payments in the event of your death.' 3 We explain the best tips so you don't loose out when you go through a divorce Advertisement 'I would definitely be worse off' By Lana Clements TRACEY Ford, 51, was married for 14 years and initially didn't consider her ex-husband's pensions as part of joint assets. The celebrant from Johnstone, Renfrewshire was mainly focussed on how to take over ownership of the house, when she decided to consult a solicitor on the situation. It was only then that she was made aware that she would be due a portion of his civil service final salary pension. She says: 'I had been self-employed for 25 years so didn't have a workplace pension. 'My ex-husband's pension was a sizable asset that I had completely overlooked until the solicitor pointed it out. 'We then went through a process to set up the appropriate paperwork so I'll receive a portion in the future. 'I would definitely be worse off in retirement had I not taken the pension into account.' Nationwide £100 payout MILLIONS of Nationwide customers are to receive a £100 cash sum over the coming weeks. Around four million will receive a share of £410million as part of Nationwide's Fairer Share programme, which rewards its banking customers. 3 Millions of Nationwide customers are to receive a £100 cash sum over the coming weeks Credit: Getty You will need to have opened a current account with Nationwide before March 31. Advertisement Those with £100 in savings at that time will also see the boon if the account was used within the first three months of this year. And Nationwide mortgage borrowers with more than £100 outstanding qualify, too. The cash will be paid into Nationwide current accounts between June 18 and July 4. Chief executive Debbie Crosbie said: 'Nationwide has had an outstanding 12 months. Advertisement "We returned a record £2.8billion in value to our members and recorded our highest ever year for growth in mortgage lending and retail deposit balances, and we remain first for customer service.' It comes after Nationwide paid £50 to customers in April and May as part of its 'Big Nationwide Thank You' following the building society's Virgin Money takeover. Those who have been Nationwide members since March 31 can currently get a £200 bonus by switching to Nationwide's FlexPlus, FlexDirect or FlexAccount. An existing member is someone who has held a mortgage, savings account or current account with the company. Advertisement Cash boost for retired CHANCELLOR Rachel Reeves has announced plans to overhaul the UK pension system, aiming to increase average retiree savings by £6,000. The reforms, part of the forthcoming Pension Schemes Bill, involve consolidating smaller defined-contribution pension schemes into larger 'megafunds'. 3 Labour chancellor Rachel Reeves is set to overhaul the UK pension system Credit: Getty Assets will be pooled from the 86 separate Local Government Pension Scheme authorities into eight funds by 2030. Advertisement The Government draws inspiration from successful models in Canada and Australia, where large-scale pension funds have achieved higher returns through diversified investments. By pooling assets, the UK aims to enhance investment opportunities and stimulate economic growth. Each megafund will set specific targets for local investment, potentially securing £20billion for community development. While the reforms promise increased returns and economic benefits, experts warn that the consolidation could overlook the advantages of smaller, well-managed schemes. Advertisement The Government plans to introduce the Pension Schemes Bill next year, with further consultations to make sure the reforms meet the needs of savers and the economy. The Government says this is a significant shift in the UK's pension landscape, aiming to balance individual retirement savings with broader economic objectives.
