London, UK (PRWEB UK) 11 January 2013
Pryce Warner International Group - A recent survey from Aviva suggested that people approaching retirement age feel they are less able to retire early, with 30% of over-55s planning to continue working part-time when they retire.
This was further confirmed by the fact that the amount people aged 55-64 earning a wage had increased by 14% between February 2010 and December 2012. The survey also found that 23% of people aged 65-74 were earning a wage in December 2012, compared to 18% in February 2010.
While some people will invariably choose to continue working past the national retirement age, that this number has increased so much during the recession suggests that most people are doing so not because they want to, but because they have to.
Despite the prospect of the recession and austerity continuing, this needn’t be the case. Private pension plans started from even a late age can dramatically increase the amount of money in an individual’s pension pot, and potentially mean they can retire earlier than expected.
Private pension plans offer higher rates of growth and consequently increased payment distributions than company pension plans. Well managed pension plan assets therefore provide far higher rates of income than the UK state pension (£107.45/week), meaning they are a more time and cost effective way of ensuring early retirement. Despite this, not many people invest in a personal pension, even though they are widely available and can be tailored to any personal circumstance.
Offshore pensions like QROPS can be particularly effective at doing this, and are available to UK residents and non-residents alike.
David Retikin, Director of Operations at Pryce Warner International Group, a leading Overseas Pension provider commented: “It is not necessarily true that all those that feel they can’t retire early, actually can’t. Many intelligent people often do not realise how much better the income and returns are on private pensions simply because they don’t take the time to properly investigate all their options. We have seen many people over the years simply opt for the company pension plan or savings accounts to provide for their retirement needs. Very often pension plan holders have not evaluated the performance of their pension plan assets. The problem is that the former have very low growth and the latter currently have negative growth. When viewed over the long term, private overseas pensions are much better at providing the growth needed to retire early and still have comfortable income levels.”