How Long Is A Piece Of String?

15 Apr 2020

How Long Is A Piece Of String?

Typically, the main queries I’m asked as a Pension Adviser from members of Workplace Pensions tend to revolve around the level of income that they may need in retirement.

How much is enough?
What is the average?
What do others do?

These are the commonly asked questions and as an adviser it is like asking ‘How long is a piece of string?!

The only way to understand someone’s true income in retirement is to work through a budget plan with them based on their current scenario and make assumptions around which of those items won’t be around at retirement. This analysis should leave the member with a ‘target’ income to aim for at retirement and this is where the need for advice kicks in as the member usually then requires recommendations as to how they can reach their income goal.

At 42 years of age, if I was asked what income I would need in retirement, I’d only have half an idea as it is not something I have given much thought too as it is still quite a time away. However, like many others during the current Covid19 lockdown, my wife and I have spent some time tightening our belts by reducing unnecessary costs since my wife has been furloughed from her current role in the leisure industry. A few voluntary measures that we have taken include taking a mortgage payment holiday and temporarily freezing our Sky and BT Sports subscriptions (this hurt quite a bit). Enforced measures that we are experiencing revolve around reductions in our entertainment spending, such as fewer takeaways, less fuel for the car, not being able to take the kids out for entertainment (big savings here) as examples.

When we now look at our bank account, could this be what our future outgoings may look like? We’d like to think our mortgage will be paid off by the time we reach retirement although if I have my way, we’ll keep my Sky and BT Sport subscription. Will we need two cars? Will we go out as much? Will we be spending money on the kids…grandchildren? We don’t know the answers to these questions, but we think that the Covid19 situation has made us a little more in tune with what the future might look like. Now that we know what this figure might be, we can now look at what pensions we have and plan accordingly in terms of what these may give us as an income.

As part of Wingate Benefit Solutions Standard Pension service, we put planning for retirement at the heart of our Pension Member Services. We produce personalised member reports which are designed to empower a member to take control of their retirement planning and help them understand what their retirement income objectives are and whether they are on track to achieve these goals.

Our report is very effective because it clearly sets out information and solutions in a format that people can understand and as such, value. A member can include not only their current employers’ workplace pension but also any other pensions that they may have already accrued, regardless as to whether these pensions are defined contribution or defined benefit schemes. As these reports come at no cost to the member, the member can ask us to run as many scenarios as they would like to really nail down their plan for retirement, looking at different angles such as:

What if I change my retirement date?
What if I pay a little more in?
What if I don’t pay in as much?

By adopting Wingate’s Standard Pension service, an employer can really add value to their workplace pension offering to make their pension scheme stand out as a valuable benefit for their staff as part of their overall benefits package, designed to attract and retain quality members of staff.

For more information on Wingate’s Standard Pension Service, please contact one of the team at Wingate on 01883 332260 or at

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