Feb
17
2011
Company umbrella contractors warned 'pensions falling in value'
Posted by Sarah Putt
The increase in inflation figures is causing pensions to suffer a decrease in value, umbrella company contractors have been warned.
Jasmine Birtles, founder of moneymagpie.com, stated that prices for products "are going up", meaning that those who reach retirement will have not be able to purchase as much as before.
She commented: "Whatever money [people] have got saved up right now [in their pension] is losing value."
One way which company umbrella contractors could gain more money towards their pension pot is by working past the retirement age, Ms Birtles advised.
As well as the tax threshold being higher for those who choose this option, the expert noted that a healthy lump sum for all the years worked past the traditional time of retirement.
The latest Prudential Class of 2011 study has suggested that many could be thinking of making this decision, with 62 per cent of 2011's retirees planning to postpone their pension.
The increase in inflation figures is causing pensions to suffer a decrease in value, umbrella company contractors have been warned.
Jasmine Birtles, founder of moneymagpie.com, stated that prices for products "are going up", meaning that those who reach retirement will have not be able to purchase as much as before.
She commented: "Whatever money [people] have got saved up right now [in their pension] is losing value."
One way which company umbrella contractors could gain more money towards their pension pot is by working past the retirement age, Ms Birtles advised.
As well as the tax threshold being higher for those who choose this option, the expert noted that a healthy lump sum for all the years worked past the traditional time of retirement.
The latest Prudential Class of 2011 study has suggested that many could be thinking of making this decision, with 62 per cent of 2011's retirees planning to postpone their pension.