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Introduction
Today 18% of the UK population is over retirement age - and this figure is projected to reach 25% by 2040. *
In 1980, the life expectancy of a 65 year old man was 14 years. Today he can expect to live until 89 - 24 more years. **
This means that someone retiring now will need to have built up around 71% more in retirement funds than someone retiring in 1980 to generate the same income.
Building a Retirement Portfolio
Today 3.2m people or 7% of UK adults are relying on property investments to fund their retirement. This leaves them dangerously exposed to fluctuations in the UK property market and interest rate movements. It is crucial that in planning for retirement the investments are diversified amongst a number of different asset-classes. ***
It is possible to access a wide variety of asset-classes through Pension Funds. These funds have a unique advantage when it comes to investing for retirement. A contribution to a Pension Fund is fully relievable against your highest marginal rate of Income Tax, and all of the growth in the Pension Fund is largely free of all UK income and capital gains taxes.
* The Independent
** Institute of Actuaries, Annuitant Mortality Tables
*** Baring Asset Management
