Don't bank on an inheritance - you could be in your 70s before you get it
Punters have rushed to bet on the Queen announcing her abdication on Christmas Day. But close friends said she would never step down.
In real life, hanging around for the family gold is never a good bet. More than one in eight of us expect to pay for part of our retirement out of an inheritance, according to a report by Old Mutual Wealth. In reality, only one in fourteen do.
So if you don’t want to end up talking to your plants, try these options instead:
You earn more than £10,000 a year (£833 a month)
Pay into your workplace pension. Under new auto-enrolment rules, your employer and the Government will be obliged by law to provide you with a pension and contribute to it. In other words, pay in monthly and you get free money.You earn more than £5,824 a year (£448 a month)
You can still ask to be enrolled in your workplace pension. So long as you can afford the monthly payment, a pension gives you a tax-free savings pot. And your employer has to contribute too.You are self-employed
You may not have a workplace pension, but you can set up a pension and you will get income tax relief. If you’re a basic-rate taxpayer, the taxman will put an extra £25 in your pension pot for every £100 you pay in. You can set up many different types of pensions. The National Employment Savings Trust (NEST) is a good place to start.As for Prince Charles? He's claimed the state pension (max £113.10) a month. He's donated the money to charity. But then, he does have some family support.
Retirement: The Royally scary facts
- The average retirement lasts 17 years long
- 1 in 6 pensioners live in poverty
- The number of people needing long-term care is set to jump 37% by 2025
- Women receive £7,000 less in retirement income than men
- Fewer than one in a hundred Brits aged between 18 and 24 prioritise saving in a pension
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