View more on these topics

Steve Webb: 13m people will see a fall in living standards in retirement


Pensions minister Steve Webb says 13 million people will see a drop in living standards when they retire, far higher than previous official estimates.

New research from the Department for Work and Pensions published to today will show that although the need for income often reduces sharply in retirement, as people no longer have to pay housing costs and change their lifestyles, large numbers of people will still see a significant fall in their standard of living.

The research says that lower earners need to receive 70 per cent of pre-retirement income to maintain their standard of living, while higher earners need to receive 50 per cent of pre-retirement income.

Writing in the FT today, Webb says the drop in living standards is due to a combination of poor state pension entitlement and the decline of workplace pensions, as well as low levels of personal saving.

Webb says the current reforms of the basic state pension and the introduction of auto-enrolment will see at least 1 million people avoid the disappointment of a significant drop in living standards and this could be higher is state pension reforms encourage higher levels of personal saving.



FCA reviews £1trn cash savings market and considers annuities study

The Financial Conduct Authority is launching a study into the £1trn UK cash savings market as part of a competition review, and is considering whether to carry out a review into competition in the annuities market. The study will be part of a programme of work where the FCA will look across financial services markets […]


Time to outsource investments? Understanding the risks and rewards

brightcove.createExperiences(); CHAIR – Cherry Reynard – regular MoneyMarketing Columnist Andrew Shepherd – MD at Brooks Macdonald Chris Davies – Director at Engage Partnership Kim North – MD at Technology & Technical Clive Summers – Compliance Consultant & Client Service Director at Resources Global Professionals Sponsored by Brooks Macdonald


Billy Burrows: People don’t take annuities seriously

Little did I know when I chose Peterborough Cathedral as the default postcode for my annuity tables in 2007 that this cathedral city would become the place where I would help run a specialist annuity business. Peterborough was chosen because it represented a Middle Britain postcode and, judging from the characters I saw in a local […]

Tom Baigrie: Spare the good advisers and hit the crooks

I had hoped that the FCA would change the regulatory focus to one of weeding out the crooks that still populate the fringes of financial services, rather than continuing the FSA’s mission to ensure that only advisory perfection, or rather their very limited version of it, survives the RDR cleansing. But recent comments about the way […]

Japan Economic Insight

James Dowey, Chief Economist, and Paul Caruana-Galizia, Economist

The conventional wisdom is that following a roughly 50 per cent rise in the stock market in 2013 in Yen terms, the Japan trade is over and done*. So the story goes, those big gains were due to a one-off boost from quantitative easing (QE) and a depreciation of the Yen — policies that one should think of as a palliative to Japan’s economic weakness, but not a cure. Rather the cure, and by implication the necessary condition for a longer-term investment case, is deep structural reforms — a painstaking re-weaving of Japan’s economic and social fabric, no less. The story continues: this is a much tougher test than launching a blast of QE, and one that prime minister Shinzo Abe, although well intentioned and well supported by the public thus far, is likely to fail. Stick a fork in Japan, it’s done…continue reading


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm