Working in the creative industries is a little different than perhaps working in corporate environments, as there are a greater number of freelance roles or fixed term contracts in addition to high percentage chance of moving employers as you progress over your career. This is certainly the case within agencies, and it is millennial employees that are more attracted to these role and so will be now experiencing this over the next decade or two. However, what ever the company you will now have a work place pension that both you and your employer will be paying in to, yet how do you keep track of them over the coming years? Or if like me you are organising your financial arrangements in order to map out the next chapter of your life, how can I consolidate or simply ensure nothing has been lost in the process of building a career.
Profile Pensions is a service that deals exactly with these issues – they can trace and bring together multiple pension pots into one place, and even advise on the best way to invest your pensions until you think about retiring. It’s a scary thought but a necessity. Thinking you don’t need to plan for retirement is a crucial part of life so I put some questions to Profile Pensions to see how they can help millennial workers plan for their future.
Pensions can be minefields of abbreviations, percentages and terms few understand; can a person now, aged 30, rely solely on a State Pension to see them through their leisure years?
This depends on the individual circumstances and things such as whether someone will be renting or a homeowner in their retirement. In order to receive the full state pension, someone will need to have made 35 years’ worth of National Insurance contributions. There’s a very good case study here which shows a pensioner living on £9,000 per year who can’t afford to put the heating on. Bearing in mind the full state pension pays £8,546.20 annually then the state pension alone may not be enough for many people. A quick fact: by May 25th, the average UK full-time worker has already earned a full year’s worth of State Pension payments – highlighting the gap faced by those people who have no other sources of income in retirement
There has been a 66% rise in millennial freelance workers over the past decade – what is the best way to save for a pension if you are self-employed?
The best way to save for a pension if self-employed is to start a personal pension and aim to contribute as much to this as realistically possible. There is also the added tax benefit being that the government will top up any monthly pension contributions by either 20%, 40%, or 45% if you’re a basic, higher-rate, or additional-rate taxpayer respectively, (this is capped usually up to £40,000 in contributions in a given tax year)
Many people had part-time jobs at university with big retailers and think they have paid into a scheme; how can Profile Pensions help?
In most cases we would recommend checking whether you have any pension schemes you’re unaware of by using the government’s Pension Tracing Service. If you think you may have contracted out of SERPS, then feel free to use our SERPS pension service. More details about that can be found here.
People who work within the creative industries are more likely to have had multiple employers over the past 10-15 years, what role can Profile Pensions play in helping to plan for their retirement?
If someone has had multiple employers then the chances are that person has multiple pension pots. We can help by consolidating customers pensions into one, which helps to reduce the paperwork and hassle. We can also help customers plan for their retirement as our ongoing service means we speak to our customers every year to check whether their circumstances have changed and to report back to the customer on how their pension is performing against their plans for retirement. We’re with our customers all the way up to retirement to ensure our customers are able to enjoy the best retirement possible.
What is the biggest barrier for millennial professionals in planning for a pension and how can Profile Pensions help break these down?
The biggest barrier is knowledge and understanding in an industry filled with unnecessary complexity and jargon. We can help break this down with our free online resources such as our blog, pensions glossary and Pension Guides. If Millennials feel they really need something then we’re happy to either answer any questions they have directly through Facebook chat, but we’re also open to other ideas millennials have and I would love to hear from them so we can create specific content pieces that they feel are helpful and valuable.
If you have found this insightful, give Profile Pensions a call or email – but a great way to self ensure that you are initially saving the correct amount for a pension, they will be launching an easy-to-use online calculator to show people how much they should be setting aside to maintain their desired lifestyle in retirement, which should be launching in the coming weeks.
This post is a paid collaboration with Profile Pensions.