Panama -- (SBWIRE) -- 03/21/2012 -- Sphinx Asia Wealth Management, Ltd. has revealed that more than one in three (35 per cent) of workers in the UK admit that they don't have a pension, meaning that they will have to rely on the State Pension and any savings in retirement.
The survey of 1,600 working adults also found that those who do contribute to a company or private pension pay in an average of 6.2 per cent of their annual incomes. Women are far less likely to save for their retirement with 41 per cent saying they do not have a pension, compared with 29 per cent of men.
To make matters worse for those who do not save into a pension fund, as well as facing a sharp drop in income at retirement, they are also missing out on significant tax relief during their working lives. Office of National Statistics figures suggest that the average worker in the UK earns nearly £1 million over the course of their working lives. An individual making the average pension contribution of 6.2 per cent of this income could receive a total of more than £15,000 in pension tax relief.
Sphinx Asia reveled that average tax relief on pension contributions is £334 per year for a person paying the basic rate of tax. Higher rate taxpayers stand to lose substantially more by not paying into a pension scheme and this most affects those expat customers of Sphinx Asia residing and working in the South East Asia region. On average, South East Asian expats, as a group, are higher earners than the comparable worker in the UK.
Teddy Marshall, head of business development at Sphinx Asia, said: "Failing to save into a pension means not only having to rely solely on the State Pension in retirement, but also missing out on the 'free money boosts' which come with pensions, such as tax relief and employer contributions.
Mr. Marshall went on to say, "When coupled with the benefits of any additional employer contributions or gains through fund performance, a pension is the best way of saving for retirement, for many people.”
“Sphinx Asia Wealth Management Ltd. is uniquely positioned with offices in the ASEAN Region as well as our New Headquarters office in Panama to advise a wider expat community on retirement planning.”
Sphinx Asia has been helping investors maximize pension benefits, understand the impact of tax relief, and ultimately secure a decent retirement income; it’s important to seek professional financial advice.
Contact email: info@sphinxasia.com