71% not confident about State Pension

More than one in four expects to retire at age 70 or older

In a survey carried out by Standard Life, 71% are not confident that they will receive the same level of today’s State pension when they retire. 

When asked the question, “Do you feel confident that the Government will pay you the same level of today’s state pension when you retire?”

• 71% are not confident, only 13% are confident and a further 16% don’t know.
• The  most confident group where those aged over 65. However only 25% of this age group expressed confidence even though this age group is closest to retirement age.
• The least confident group are those aged between 45 and 54 – only 7% of this group is confident whilst 78% are not.

“It’s not surprising given the state of the economy that people are concerned if the State pension can continue at the current rate.” said Jim Connolly Head of Pensions at Standard Life. “These results confirm that people cannot purely rely on the State to fund their long term financial needs. More people should be encouraged to take responsibility for their long term financial needs and it’s really important that Government policy make private pensions an attractive option.” he added

One of the areas that would make pensions more attractive is to make them more flexible. In the same survey – nearly half of those surveyed said they would save more into a pension if they could access some of the fund before retirement. Interestingly this feature was most likely to appeal to younger people. 60% of 35-44 year olds said they would save more into a pension if they were more accessible.

More than one in four expect to retire at age 70 or more

When asked what age people think they will retire,

• The average expected retirement age is 65.1
• More than one in four (26%) expect to retire at age 70 or more
• Only 9% expect to retire before they reach 60

Notes for Editors

These results are based on an independent online survey conducted by Research Plus Ltd on behalf of Standard Life of 1,003 adults aged 18+, in the Republic of Ireland between 23^rd March – 2^nd April 2012.

Couples urged to shop around as mortgage protection premiums fall

By Charlie Weston Personal Finance Editor
Wednesday May 25 2011

COUPLES can save up to €126 a year on their mortgage protection premiums by seeking out a better deal, according to the National Consumer Agency.
Mortgage protection and life insurance premium rates have fallen dramatically recently due to fierce competition among insurers and the fact that people are living longer, so insurers are having to pay out less often.
Now a new survey by the state agency has found massive variations in premium rates for life insurance and mortgage protection.
Premiums range from €53 a month to €76 a month for a couple who smoke and want to take out mortgage protection insurance on a €380,000 home loan.
Difference
Over a year, the difference works out at €274. But over the 35-year term of the mortgage the difference climbs to more than €9,500.
Non-smokers can save €126 a year by seeking out the best rates in the market.
The couple in this example have joint mortgage protection cover, which means the policy will pay out the sum insured if one of them dies.
Huge savings can also be made on life insurance.
A couple who smoke could be over-paying by €335 a year by failing to get the lowest premium in the market, the National Consumer Agency research found.
The survey examined the cost of term-life and mortgage protection cover against a range of different consumer profiles.
Maria Hurley of the consumer agency said the research also found that smokers who kick the habit for at least a year can save up to €590 annually for life insurance by getting the best deal.
Chief executive of the Irish Brokers' Association Ciaran Phelan said households typically phone a couple of insurance companies every few years, identify the best deal at that time and just assume that the same provider will continue to offer the best price. But this is wrong.
"Prices change dramatically all the time, so it pays to let a broker shop the market and get the best cover at the most affordable price," he said.
Most consumers need mortgage protection and term assurance to replace their income in the event of their untimely death. A 40-year-old couple spending €1,000 per annum can typically afford €200,000 to €300,000 in cover.
With increasing longevity resulting in falling insurance prices over the last few years, a saving of at least €200 could be achieved, he said.
- Charlie Weston Personal Finance Editor
Irish Independent

Wisdom from Oscar Wilde

“When I was young I thought that money was the most important thing in life, now that I am old I know that it is” – Oscar Wilde.

During the Celtic tiger years, it may have seemed that spending money,
was for most people their main objective. Now that we are living through
the austerity years, saving money for many of us is a major priority.

Recent CSO figures have consistently shown an increase in the level of
household savings, clearly many people are now making sacrifices in their day to day spending in order to save more of their hard earned cash. 

The increase in the level of savings, starkly illustrates a new reality,
"financial fear", we now need to build up savings to offset the potential effects of a "rainy day", for the future cost of our Children's 3rd level fees, or for the drop in our income, if and when we stop work. The increase in saving reflects an overall sense of reality, that the state won't be picking up the tab to the same level it has been, for many of the services and benefits that we all have come to take for granted.

There are many different savings choices out there  from pension to regular saving accounts, and hundreds of investment options  from deposits with a bank, to investing in absolute return funds.   
  
We strongly recommend that you talk to us here in Mount Street Group today, and let us help you to put a savings strategy in place.

Niall Power QFA Grad Dip Financial Planning.
Mount Street Group.

Where did that €16,000 come from?

We had a client who was totally focused on keeping his business trading, he wanted to make sure he was properly covered in terms of life insurance, he didn't want to leave his wife and kids in the lurch!
When he looked at his policies he knew he could save a few Euro but didn't think it was worth the hassle, he had 3 seperate policies with different terms and thought he would be better off putting his time towards running his business than chasing savings on his policies.

When carrying out an investment review for him we convinced him to let us review his life cover, guess what, when we added all the savings, he would be €16,300 off over the term of the policies, while keeping the same level of cover for €2,000 less p.a. To say he was shocked is an    understatement, as he said himself the work he would have to put in to make €16k "didn't bear thinking about"!

Trustees Training Obligations - Update!!

Trustees are required to receive training within six months of their appointment and at least every two years thereafter.

Where a person was already a trustee before 1 February 2010, the training had to be completed before 1 February 2012 and at least every two years thereafter.

Trustees must record in the scheme’s annual report that they have received appropriate trustee training as required by the Pensions Act within the time limits set out therein.

The Board will monitor trustee training compliance on an ongoing basis.

For further information see FAQs on Trustee Training

Over €2,000 saved by a single phone call

Our client has a number of investment properties, which he covered by separate insurance policies. We looked at the terms and what other cover the client had. His personal cover was way under his requirements. We got him, more personal cover (we also included his wife, who was not covered on any of the original plans). What was the benefit to the client financially? We saved him €2,300 over the term. Plus extra cover on him and cover for his wife, who unbelievably enough wasn’t covered at all.