Latest news with #RowleyTurton
Daily Mirror
31-07-2025
- Business
- Daily Mirror
Brits warned over 'simple mistake' after pension pot is hit by £80,000 blow
Brits have been warned to avoid making a particular mistake when it comes to their pension, as one man found out that it could lose him £80,000 UK households have been warned against making a simple error that cost one pension pot £80,000. Whilst it may be appealing to reduce expenses on pension services, this is one area where financial advisers are urging people not to economise. Scott Gallacher, director at Rowley Turton, said: "Cutting costs by skipping financial advice can be a false economy." Explaining why it's crucial to ensure all your details are accurate, Mr Gallacher recounted the story of a client who missed out on tens of thousands simply for ticking the wrong box. It comes after news of a £200 payment for state pensioners born before 1959 to be made soon. He revealed: "One DIY client ticked the wrong box when accessing his pension and lost £200,000 of tax-free cash – an £80,000 tax hit." "This was a few years ago. He had an old occupational scheme but transferred benefit not as a 'wind up' or 'buddy transfer', and lost scheme-specific tax-free cash entitlement and was then limited to 25%. Another refused to pay our £500 fee for help encashing an offshore bond, only to lose £1,500 in unnecessary tax." MrGallacher added: "Retiring without advice can mean missing out on enhanced annuities, costing up to 10% of your retirement income for the sake of 1% in fees. Clients also regularly overpay on mortgages by not using a broker, or stick with poor-value pensions and investments with high fees. The cost of advice is often dwarfed by the long-term value it adds – or the disasters it prevents." The Money and Pensions Service reports that over 45 million individuals in the UK have private pension funds, with varying amounts set aside for their retirement. However, it seems future retirees may not have it as good as today's pensioners. Those retiring in 2050 are projected to have £800 or 8% less private pension income than those retiring today, according to the report. It was also found that four in 10 people are currently not saving enough money for their retirement. For those looking to start saving for their retirement years, the earlier, the better. This will give the money enough time for it to grow, leading to a larger pension pot in retirement. Tony Redondo, founder of Cosmos Currency Exchange, warned: "Shortcuts often lead to bigger bills. Skimpy insurance policies may not cover damages, leaving you to pay big out-of-pocket costs."
Glasgow Times
21-07-2025
- Business
- Glasgow Times
DWP State Pension Age could rise more quickly after review
Third Review of State Pension age will be an independent report by Dr Suzy Morrissey. New analysis today also reveals a stark a 48% gender pensions gap in private pension wealth between women and men. A typical woman currently approaching retirement can expect a private pension income worth over £5,000 less than that of a typical man (just over £100 per week for a woman compared to just over £200 a week for a man). While the introduction of Automatic Enrolment increased the numbers saving, saving levels have often remained low. Around 1-in-2 workers in the private sector only save around the minimum contribution level (8% or less of earnings). Philly Ponniah, chartered wealth manager and financial coach at Philly Financial, says that "while auto-enrolment was a great start, it's not a full solution". She continues: "Yes, it's brought millions into pension saving, but most are stuck at the minimum 8%, and that's simply not enough for a comfortable retirement. "Employers are under pressure, too, and it's understandable that many can't stretch contributions further right now, especially with higher national insurance costs. But that makes personal awareness even more important. People need to know what 8% really gets them, and why it matters to put more aside for the future. 'The shift from Defined Benefit to Defined Contribution means the risk and responsibility now sits with the individual. Without better education on investing and understanding risk, many will unknowingly fall behind. It's not just about saving more, it's about making what you do save work harder. Otherwise, we risk creating a generation that thinks they're doing the right thing, while falling short.' Scott Gallacher, director at Rowley Turton, said the government set the bar too low: "When the government introduced auto-enrolment, they took the easy way out by setting the bar too low. "The qualifying earnings threshold hits part-time workers hardest, especially those in retail and hospitality, sectors dominated by women. Recommended reading: 'In my view, this structure amounts to a form of indirect sex discrimination and I've never understood how it was allowed to happen. I raised the potential for indirect sex discrimination with the government at the time, but never got a straight answer. "If we're serious about closing the gender pensions gap and improving retirement outcomes, fixing these flaws in auto-enrolment must be a priority. "That said, fixing it now, during a time of economic pressure, is a tough ask. But if we don't address these structural flaws soon, we'll be locking in poor retirement outcomes for millions.'
