Millions of pension savers 'risk being unable to afford a comfortable retirement'

Seven in 10 people think retirement income targets would encourage them to save more

• Vicky Shaw

30.4 million working-age people across the UK risk not being able to afford the lifestyle they want in later life ( Getty Images/iStockphoto )

Millions of pension savers are in the dark about whether they are on track for a comfortable retirement financially, a report warns.
Four in five people are not confident they are putting enough aside for later life, the Pensions and Lifetime Savings Association (PLSA) said.

This equates to 30.4 million working-age people across the UK who risk not being able to afford the lifestyle they want in later life.

The findings were made in the PLSA's Hitting the Target report - which aims to help people achieve better retirement incomes.

It calls for the introduction of retirement income targets showing the lifestyle someone could afford on different levels of income. The PLSA has commissioned researchers to develop these.
Seven in 10 people think retirement income targets would encourage them to save more, increasing to more than 78 per cent of millennials aged 18 to 34, the PLSA found.
While a third of people say they could save more for retirement, uncertainty about how much cash they will need may be holding people back, the report suggests.
Automatic enrolment into workplace pensions was introduced in 2012 to head off fears of a later life savings crisis.

Minimum contribution rates into workplace pensions are gradually being stepped up to encourage people to save more.
But many people wrongly assume that this minimum level is the target they should be aiming for to be comfortably off, the report found.
The minimum auto-enrolment pension contribution rate is 5 per cent, increasing to 8 per cent next year. Rates are made up of contributions from staff and employers.

Just over half of people wrongly believe the minimum rates are the recommended amount to save.

The report also said minimum contribution levels for automatic enrolment should be boosted from 8 per cent of band earnings to 12 per cent of total salary between 2025 and 2030, with at least 50 per cent of this coming from employers to ensure it is affordable for savers.
Nigel Peaple, director of policy and research at the PLSA, said: “Millions of savers are in the dark about whether they're on track for the lifestyle they want in retirement.
“With future generations unlikely to have the same levels of property wealth, or final salary pensions, as current retirees do, it's vital more is done to ensure people can cover the costs of later life.”

Around 1,500 people aged 18 to state pension age (SPA) were surveyed for the report.
Sir Steve Webb, a former pensions minister who is now director of policy at Royal London, said: “One of the most commonly asked questions in pensions is: 'How much do I need to save?'.
“A system of retirement income targets would help people to work out what sort of retirement they could expect if they save at varying levels.
“This would also enable pensions to be presented in a positive light as giving people choices over their quality of life in retirement, rather than trying to make people feel guilty about not saving enough - a strategy which has never worked in the past.”

Baroness Altmann, another former pensions minister, said: “It is certainly true that people are not sure how much they should be contributing to a pension, to secure themselves a comfortable retirement.
“It is also very worrying that so many people think the auto-enrolment minimum levels are an appropriate amount - they are unlikely to deliver a large private pension.
“But most people need help with financial planning and would benefit from having an independent expert adviser to monitor their savings over time and recommend what they should do.”

She continued: “Pension planning is not an exact science and your pension fund needs to be monitored regularly. If you do not have enough saved, you could decide to keep working longer and save more.”
Speaking generally, Alistair McQueen, head of savings and retirement at Aviva, said that to build a decent-sized pot the insurer would advocate starting saving at least 40 years before retirement; saving at least 12% of earnings every month including employer contributions; and aiming to build at least 10 times annual earnings in a pot by retirement.
Mr McQueen said: “It's good to see the PLSA agree with Aviva's view that minimum automatic enrolment contributions should be increased from 8 per cent to 12 per cent of earnings by 2030.”

A Department for Work and Pensions spokesman said: “Automatic enrolment was introduced so that people who were previously saving nothing towards their retirement could start saving into a workplace pension. Almost 10 million people have been enrolled so far.
“We have brought in phased contribution rate increases for workplace pensions and are committed to an ongoing review to ensure we continue to balance the need to save with everyday costs.
“For those who would like guidance on their pension, Pension Wise is a free and impartial government service which can help.”


Culled from Inedependent

This Is the Worst State to Live in If You’re Over 65

• Emma Bleznak

As you prepare to retire or relocate, one crucial factor many Americans let slip is affordability. While the idea of a worry-free retirement is enviable, it isn’t realistic. Some states make retiring easier — and more affordable — while others are tougher on your budget and lifestyle.

This analysis of popular locations provides insight into which states are tougher to retire in, which are expensive to live in general (page 7) and the worst state to live in that will definitely surprise you (page 15).

15. South Carolina

Assisted living costs $34,000 on average in South Carolina. | Sean Pavone/iStock/Getty Images

• $34,000 annual cost for assisted living
• $77,000 annual cost for nursing home

The warm, summery state is a popular destination for retired couples, singles, and even families. However, when it comes to the cost of care for seniors, it rates around average.
The average cost for one person to seek assisted living is $34,000, while nursing home costs more than double that figure. Hiring a home health aide may be the best bet for senior citizens who need extra help — on average, an aide costs $45,000 annually.
Next: This state is fairly affordable and fun for retirees.

14. Tennessee

Tennessee is relatively affordable. | SeanPavonePhoto/iStock/Getty Images

• $43,000 annual cost for assisted living
• $73,000 annual cost for nursing home

Tennessee is pretty affordable — and fun — for senior living. It’s about $10,000 cheaper than the national median to live in a nursing home, and an in-home health aide is less than $50,000.
Where retiring is concerned, a two-bedroom in Tennessee will run you an average of $995 a month. According to Numbeo, the cost of living in Nashville ranks 169th out of 534 major cities worldwide.
Next: The perks (and downfalls) of retiring in the Lone Star state.

13. Texas

Some parts of Texas are more affordable than others. | Roschetzky/iStock/Getty Images

• Texas scores high for the cost of senior care, the cost of living, and elderly and family support services
• The only issue is Texas’s size

The median cost for a nursing home in the Lone Star State is $54,000. While the median is cheaper than the national average, the costly cities of Texas make living in a flourishing area tough for most retirees.
“I live in Houston, and the cost and availability of senior services here is going to be vastly different than in many other parts of the state,” Jason Biddle, a senior care veteran and creator of The Helping Home, told Caring. “But if you live in Texas and you need to stretch your dollar, the good news is you could probably find a more affordable county without leaving the state.”
Next: This state balances its high cost of senior services with its low cost of living

12. Ohio

Senior care is expensive in Ohio, but the overall cost of living is low. | Ken Winters, U.S. Army Corps of Engineers/Wikimedia Commons

• Cost of senior living in Ohio is on par with national medians
• The average nursing home cost in Ohio is $81,000

While the Buckeye State starts off our list of costly senior care states — assisted living facilities run around $50,000 — the low cost of living in general balances it out. An in-home aide is the cheapest senior living option at $48,000 a year.
“Senior services might cost a bit more than some of these other Top 10 states, but the low cost of living winds up balancing that out a little bit,” Stephan Weiler, a professor of economics, confirmed.
Next: This state has popular (and expensive) cities for retired Americans.

11. Arizona

Arizona is a popular retirement destination. | lucky-photographer/iStock/Getty Images

• Multiple Arizona cities are popular retirement destinations
• It ranked third for the overall cost of living and 23rd for the cost of senior care services

Arizona is an increasingly popular state for retirees — Scottsdale, Arizona is the most popular city nationwide for seniors — and it’s still fairly affordable. The annual costs for assisted living facilities are a bit higher than the national median, while nursing homes cost about $10,000 less ($76,500).
The average rent for a studio in Arizona is $725, and compared to other major U.S. cities like Miami and Dallas, living in a hub like Phoenix is significantly cheaper.
Next: The seafood may be great, but it doesn’t come cheap.

10. Maine

Maine is expensive, but the quality of senior support services is high. | krblokhin/iStock/Getty Images

• Being a senior in Maine isn’t cheap
• Assisted living facilities and nursing homes will run you $24,000 more than the country’s median cost

While Maine is an expensive city to retire in — it ranks 39th for cost of living and 39th for the cost of senior services — it also ranks high for the quality of its elderly support services.
“For having such potentially secluded regions I think that’s a pretty promising stat for Maine,” Jim Miller, the publisher of SavvySenior.org told Caring.com. “But if you live in a part of the state where [they] actually have abundant access, I imagine it’s probably going to be expensive.”
Next: This great state for seniors comes at a great cost.

9. New Hampshire

Senior care costs more than average in New Hampshire. | travelview/Getty Images

• The median costs for home aides, nursing homes, and assisted living facilities all exceed the national rates

The winter chill isn’t the only challenge New Hampshire presents for seniors: the Granite State ranks 44th for the overall cost of living and 45th for senior care services. The median cost per year for a home aide is over $60,000 and a nursing home will run you over $115,000 a year.
Still, New Hampshire proves a great place for access to supportive senior and family programs (it ranks 12th).
Next: This state’s unique landscape makes for an expensive retirement destination.

8. Delaware

A year in a nursing home in Delaware costs more than $127,000, on average. | Eva Hambach/AFP/Getty Images

• The state is unique as it has both rural and coastal towns
• The cost of living is moderately expensive but the price of everyday life fluctuates

Delaware has rural and isolated areas as well as coastal towns and cities that run fairly expensive compared to other U.S. cities. Costal, popular cities like Wilmington are around 8% more expensive than the national average for cost of living according to Payscale.
Delaware ranks 33rd for the overall cost of living and 41st for senior affordability. The median cost to live in a nursing home each year is $127,750, significantly higher than the national average of $86,500.
Next: It’ll come as no surprise this city is expensive regardless of your age

7. New York

Unsurprisingly, New York is expensive for retirees. | Sean Pavone/iStock/Getty Images

• New York ranked 13th for elderly and family caregiver support services
• It’s second-to-last for the overall cost of living

The median costs for home aides and assisted living facilities in New York are in line with the national medians. A nursing home, on the other hand, will run you about $47,000 more than the national average at over $130,000.
“I often say New York City and the surrounding metro area is one of the best places for seniors,” NYC-based eldercare advisor Joanna Leefer told Caring.com. “… it has so many accessible services and you can easily get almost anywhere you need to. If you’re in an upstate suburb it might not be as easy, but it will be cheaper.”
Next: 

6. Alaska

Alaska’s remoteness makes it expensive for seniors. | Z-lex/iStock/Getty Images

• This state ranked last for the overall cost of senior care services
• The median cost of a nursing home is nearly $300,000

Alaska senior care services are expensive for the exact opposite reason New York is — it’s remote and undeveloped nature. Hiring an in-home health aide costs nearly $63,000 and a nursing home is $206,000 more than the national average cost.
On a more positive note, Alaska ranks 10th for elderly caregiver support. Caring.com believes this is a result of the relatively high population densities in the state’s major cities, Anchorage and Fairbanks.
Next: This state is pretty expensive to retire in … and we wouldn’t want to

5. North Dakota

North Dakota ranks near the bottom for the quality of elderly and family caregiver support. | Andrew Burton/Getty Images

• Similar to Alaska, North Dakota’s remote nature affects affordability
• The median cost for a nursing home is $127,630 annually

North Dakota placed 47 for the quality of elderly and family caregiver support. Its weather poses a problem for plenty of seniors as well. “Few people, especially seniors, can handle a climate like North Dakota’s … so you don’t have dense, urban clusters like you do in some other states,” said Jim Miller.
The best financial option for senior care is assisted living — the median cost is $36,000 a year, which is on par with other states and the national average.
Next: It may be your dream to retire here, but it’s also extremely expensive.

4. Hawaii

Life in Hawaii is expensive. | Digital Vision/Getty Images

• Hawaii’s climate is to blame for the high cost of elderly care and living in general

Similar to North Dakota, Hawaii’s weather is to blame for the high cost of elder care services. Unlike North Dakota, it’s an extremely popular and desirable spot to retire. Hawaii falls in last place for the overall cost of living — housing, food, drinks, and insurance will break the bank there — and nursing homes are expensive as well.
The popular tourist destination charges an average $137,000 annually to live in a nursing home and around $60,000 a year for an in-home health aide.
Next: The most densely-populated U.S. state costs more than you’d expect

3. New Jersey

Living in New Jersey is costly. | SeanPavonePhoto/iStock/Getty Images

• New Jersey is expensive due to its position as the most densely populated state in the U.S.
• It’s one of the top 10 most expensive states for senior care services

The Garden State is prepared to handle senior services — it ranked 24th for caregiver support — but these services don’t come cheap. Hiring a home health aide is the best option as it falls in line with the national average, but the median cost of one year in a nursing home is $120,450, more than most families can afford.
The annual cost of residing in an assisted living facility is $24,000 above the national median as well. And while the coastline cities are enviable retirement destinations, they’ll burn a hole in your bank account for sure.
Next: All of this state’s elder care costs exceed national averages

2. Rhode Island

East Coast states like Rhode Island tend to be more expensive. | Source: iStock

• Rhode Island reveals one truth about East Coast states and senior living
• All of its elder care costs exceed the national averages

The analysis found that Rhode Island inevitably has more resources for seniors, yet it still only ranks 34th for family caregiver support. “Dense, popular, East Coast states are always going to be more expensive across the board,” Stephan Weiler revealed.
The New England state ranked 40th for the cost of senior care and 42nd for the overall cost of living. An assisted living facility will run you (or your parents) $61,860 per year while a nursing home puts you back $101,835 on average.
Next: The most expensive state for your aging parents, revealed

1. Wyoming

Wyoming is the most expensive state for retirees. | Karen Bleier/AFP/Getty Images

• It’s not an expensive state to call home
• It’s still the most expensive state for aging adults

Wyoming isn’t necessarily an expensive state to call home, but its supportive policies and programs — or lack thereof — make it the most expensive state for retirees.
“This isn’t all that surprising given how rural and sparse Wyoming is,” Weiler said. “They simply have fewer facilities and support networks than other more densely populated parts of the country.”

Wallstreetcheatsheet

UK pension funds get green light to dump fossil fuel investments

Government directive means trustees will be able to push harder for green investments

Patrick Collinson and Julia Kollewe

Young people are increasingly questioning where their money is being invested, says secretary of state for work and pensions Esther McVey. Photograph: Justin Sullivan/Getty Images

Managers of the £1.5tn invested in Britain’sworkplace pension schemes are to be given new powers to dump shares in oil, gas and coal companies in favour of long-term investment in green and “social impact” opportunities.
Government proposals published on Monday are designed to give pension fund trustees more confidence to divest from environmentally damaging fossil fuels and put their cash in green alternatives if it meets their members’ wishes. Until now many pension trustees have been hamstrung by fiduciary duties that they feel requires them to seek the best returns irrespective of the threat of climate change.
The new rules, though couched in opaque legalese, are a coded go-ahead for pension funds to sell shares in fossil fuel companies if they believe that they could turn into “stranded assets”. The term refers to companies’ coal, oil and gas deposits that may not ever be monetised as the world transitions to a low-carbon economy.

In the paper published on Monday, Clarifying and Strengthening Trustees’ Investment Duties, the Department for Work and Pensions (DWP) said: “Our proposed regulations are intended to reassure trustees that they can (and indeed should) take account of financially material risks, whether these stem from investee firms’ traditional financial reporting, or from broader risks covered in non-financial reporting or elsewhere.”
Environmental campaigners reckon that investments amounting to trillions of dollars in fossil fuels – coal mines, oil wells, power stations, conventional vehicles – will lose their value when the world moves decisively to a low-carbon economy.
They believe that fossil fuel reserves and production facilities will become stranded assets, having absorbed capital but are unable to be used to make a profit. This carbon bubble has been estimated at between $1tn (£753m) and $4tn, a large chunk of the global economy’s balance sheet.
But the DWP warned that the new rules do not give carte blanche for activist groups to bully pension funds into selling out of fossil fuels. “These proposals are not intended to give any support to activist groups for boycotts or divestment from certain assets,” the DWP paper said. “Trustees have primacy in investment decisions and, whilst they should not necessarily rule out the ability to take account of members’ views, they are never obliged to, and the prime focus is to deliver a return to members.”
Unison, the public sector union, launched a campaign in January to encourage local government pension funds – which have invested £16bn in the fossil fuel industry – to divest from carbon.
The new rules, subject to a consultation period, have been brought forward by secretary of state for work and pensions, Esther McVey.
“As we see the younger generation care more about where their money is going, they are also increasingly questioning that their pensions are invested in a way that aligns with their values,” she said. “This money can now be used to build a more sustainable, fairer and equal society for future generations.”
Climate change campaigners said they were delighted at the proposals. Bethan Livesey, head of policy at ShareAction, said: “ShareAction has been pushing for changes to these regulations for years.
“For too long, many pension schemes have disclosed little more than vague, high-level statements on their approach to ESG [Environmental, Social and Governance] factors, and it is unclear what, if anything, is being done behind the scenes.
“Pension schemes seem to fall into three camps: those who understand the financial value of taking ESG factors seriously and do so, those who say they understand but do very little and those who have no clue. These changes to the regulations should at the very least enlighten the third group.”

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A growing number of UK and European insurance companies have started selling holdings in coal companies and refusing to insure their operations. More than £15bn has been divested by insurers including Allianz, Aviva, Axa, Legal & General, Swiss Re and Zurich in the past two years, according to Unfriend Coal Network, a global coalition of NGOs and campaigners including 350.org and Greenpeace.
Last week Legal & General said it would exclude China Construction Bank, Russia’s Rosneft, the Japanese carmaker Subaru and five other companies that have failed to act on climate change from its Future World Fund.
The Rockefeller Family Fund, a charitable fund of the Rockefeller family, which made its fortune from Standard Oil, has started divesting from fossil fuel holdings.
However, Cambridge University has just ruled out divesting from oil and gas in its £6.3bn endowment fund – despite public pressure from hundreds of academics and a hunger strike by three undergraduates. Cambridge said it had no direct investment in fossil fuel companies and wanted to avoid any direct investment in coal and tar sands, while keeping indirect investment to a minimum.

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Culled from The Guardian 

How Does the Broke Middle Class Really Afford Retirement?

• Emma Bleznak

The middle class isn’t poor, but they’re certainly not rich. Turns out, this generation is broker than ever — and many of them are struggling to retire at a reasonable age, let alone at all.

These are six tricks and tools the middle class uses to afford retirement, but they often  come at a cost. We’ll also let you know how much you really should have saved for retirement (page 7).

1. Social Security

It’s hard to make ends meet on Social Security alone. | William Thomas Cain/Getty Images

Social Security checks — often dubbed “welfare for the middle class” — provide monthly stipends to retirees based on their working income. According to The Washington Post, Social Security benefits have lost nearly a third of their purchasing power in the last 18 years.
Almost 20% of retired adults 65 and older rely on Social Security as their sole form of income. Thirty-three percent use it as the majority (90%) of their income, while a staggering 60% rely on it as half their income. The average monthly Social Security benefit for 2017 was $1,342.
Next: Here’s how retirees are paying for healthcare.

2. Medicare

Medicare is a huge help, but it isn’t always enough. | Didesign021/iStock/Getty Images

Many middle-class adults 65 and older rely on Medicare to cover expensive but common medical services. Medicare will take care of prescription drug purchases, organ transplants, and lab tests. However, it won’t take care of basic vision, hearing, and dental check-ups.
Medicare Part B — which covers the costs of doctor visits and outpatient services — is going to be pricier in 2018 for Americans collecting Social Security checks. Since Social Security automatically pays the Part B premium, Americans were paying around $109 a month for Medicare coverage in 2017. In 2018, around 28$ of Part B enrollees’ Social Security cost-of-living adjustment (COLA) increase won’t be enough to cover the premium.
Next: This program covers 20% of Americans nationwide.

3. Medicaid

Medicaid pays for the majority of seniors living in nursing homes. | Rawpixel/iStock/Getty Images

Medicaid — not Medicare — pays for most of nursing home or home care for the elderly when older adults run out of savings. According to CNN, Medicaid pays for around two-thirds of the 1.4 million elderly currently living in nursing homes. It also covers 20% of all Americans.
While the GOP’s 2017 battle to repeal Obamacare failed, it scared many middle-class Americans. The legislation would have taken an ax to Medicaid — leaving more people than before without government-subsidized insurance.
Next: You’ll be surprised how many people work after retiring from full-time positions.

4. Part-time jobs

Some people stay working past retirement age. | Ulrik Tofte/iStock/Getty Images

In May 2016, 18.8% of Americans 65 and older still held a job.  As life-expectancy increases from decade to decade so does the need to save more — as well as the desire to continue giving back to our community. Plenty of Americans choose to continue working for more than just the money. Since you can work and still receive Social Security benefits — although your job earnings may impact how much you receive — many Americans choose to seek the best of both worlds come 65.
Many retirees work seasonal part-time jobs, choose to profit from their hobbies or work in the “gig economy” driving for Uber or Lyft.
Next: Depending on your assets, this may be the way to go.

5. Mortgage-free by retirement

Retirees should be mortgage-free by the time they leave work. | monkeybusinessimages/iStock/Getty Images

Most financial planners recommend their clients pay off the mortgage on their house before they retire. The percentage of homeowners of retiring age with mortgage debt increased from 22% to 30% from 2001 to 2011. Homeowners 75 and older with debt skyrocketed from 8.4% to 21.2%.
However, there are still plenty of middle-class Americans finding ways to pay their mortgage off before they lose their regular income. Fifty-four percent of retired Americans were mortgage-free in 2017.
Next: We bet you never considered this career path after age 65.

6. ‘Workampers’

Some seniors travel the country working seasonal jobs. | Kevork Djansezian/Getty Images

A Washington Post story on the broke middle class revealed a new type of way older Americans are retiring: Buying campers and hitting the road to work as they travel. These “workampers” sell their homes, purchase RVs, and pick up seasonal jobs as they travel the country.
The paper highlighted Amazon’s “CamperForce” program, which “brings together a community of enthusiastic RV’ers who help make the holidays bright for customers of Amazon.com.” The program has campsites in 27 states where retirees spend 3 to 4 of the winter months picking, packing, stowing, and receiving shipments. The program’s benefits include paid campsites, time and a half overtime, life and AD&D insurance as well as medical and prescription drug coverage.
Next: Did you know this is how much you should be saving?

Here’s how much retirement money you should have

Start saving for retirement early. | jerry2313/iStock/Getty Images

An alarming 70% of American adults have less than $1,000 in their savings accounts. Experts have crunched the numbers to identify how much you should have saved at each age milestone for a comfortable retirement.
By age 30, aim to have the equivalent of your annual salary saved. Every five years, increase this in single increments: By 35, you should have twice your annual salary saved and by 40-years-old you should have three times. By 65-years-old this will leave you with a savings equivalent to eight times your annual salary.
Next: Despite their lack of savings, this is when the average member of the middle class retires.

The middle class is actually retiring earlier

People are retiring early — whether they can afford it or not. | Rhona Wise/AFP/Getty Images)

One in 5 Americans has no savings account and nearly half retire with nothing in the bank. A 2015 U.S. Government Accountability Office report revealed that almost one-third of U.S. households “headed by someone 55 or older” are void of pensions and retirement savings.
About half of America retires by age 65, while 22% retire from 66- to 74-years-old. In 2000, the average age of retirement was 62. As of 2017, it’s 63 — still under the recommended age of 66.

Wallstreetcheatsheet

The 8 Crazy Ways North Korea Makes Money Despite Sanctions

• Jason Rossi

In case you’re not paying attention North Korea has been in the news a lot lately. As usual, it’s for all the wrong reasons.

Continuing to develop of nuclear missiles that threaten the United States. A bold assassination of the half-brother of leader Kim Jong Un. The lavish diet and creature comforts he enjoys while most North Koreans go hungry.

Whether or not Kim is crazy enough to actually launch a missile is debatable. What isn’t up for debate is that North Korea continues finding ways to fund its nuclear ambitions. Sanctions aren’t keeping North Korea from making enough money to build nuclear weapons. This is how the country does it.

1. Coal

North Korea is all about the black market. | EvgenyMiroshnichenko/iStock/Getty Images

Yes, China pumped the brakes on importing North Korean coal early in 2017, and Reuters reports coal, lead, and iron imports to China from North Korea dropped drastically. Yet many experts believe the country is still making money by selling coal to its neighbor to the north. How? By engaging in off-the-books trade that is harder to trace.
Next: Talk about making money.

2. Counterfeiting

North Korea has been counterfeiting Chinese currency as well. | halduns/iStock/Getty Images

If you can’t legally make money, why not just fake it? That’s North Korea’s thinking. In 2009, a man was sentenced to more than 12 years in prison for successfully passing millions of dollars of counterfeit bills in Las Vegas casinos. It wasn’t an isolated case. That same year, a Taiwanese woman shipped close to $400,000 in counterfeit U.S. currency to herself. She was caught by the FBI, but only after smuggling and spending thousands of dollars of counterfeit money. It’s not just U.S. currency that’s being faked, as United Press International writes that Chinese currency is being printed in North Korea.
Next: A world wide web of deceit.

3. Cybercrime

They’re stealing money through hacking. | iStock/Getty Images

It is believed North Korea launched a 2014 hack on Sony Pictures. British intelligence believes North Korea launched a malware attack that hit a number of hospitals and health centers, and CNBC reports the country was behind a cyberheist that saw $81 million disappear from Bangladesh’s central bank. Even when not stealing money or crashing computer systems, North Korea is lurking on networks and learning weaknesses in preparation for another attack, according to The Diplomat.
Next: It gets by with a little help from its…

4. Friends

It is believed that Iran shares nuclear information. | silverjohn/iStock/Getty Images

The off-the-books coal and mineral trade with China is just one way North Korea makes money. Sympathetic nationals and other pariah states are helping it get the cash and resources it needs. David Thompson, writing for the non-profit C4ADS, spotlights the case of Chinese citizen Fan Mintian, caught attempting to smuggle weapons from Cuba to North Korea, and that is just one case of foreign citizens helping. It is believed Iran, another enemy of the United States, and North Korea share nuclear information and resources.
Next: The country is a major player in this illegal activity.

5. Heroin

They’re the third largest heroin producer. | John Moore/Getty Images

That North Korea has been refining and distributing heroin around the world is an open secret. The Australian navy seized a North Korean ship transporting more than 100 kilograms of the drug in 2003. In fact, U.S. officials say the country is the world’s third-leading heroin producer behind Afghanistan and Burma, and the CIA calls out North Korean diplomats for engaging in heroin trafficking on a regular basis.  
Next: Another addictive agent helps line the pockets.

6. Methamphetamine

North Korea makes its money off of addicts. | Hannelore Foerster/Getty Images

As we’ve just seen, North Korea uses the heroin trade to make some off-the-books money. It seems one drug isn’t enough, as the country sends methamphetamine around the globe. The U.S. Department of Justice convicted three international conspirators of attempting to import 100 kilograms of North Korea-produced meth in 2015. That was three years after the same trio sold 30 kilos of the substance. The narcotics North Korea produces are in addition to fake pharmaceuticals, like Viagra, it makes.
Next: Putting the work in Workers’ Party of Korea.

7. Slave labor

They have been profiting off of enslaved labor and sex slavery. | rodjulian/iStock/Getty Images

The Workers’ Party of Korea is the political party running North Korea, and slave labor within the country has long been utilized. Apparently, it is also an export. Citizens up to the task work jobs overseas, with handlers watching their every move. Wages are mostly or entirely skimmed and the workers receive nothing, or close to it. A CNN report claims this scam brings in more than $1 billion annually.
Next: An ICBM for an ICBM.

8. Weapons

North Korea attempted to smuggle chemical weapons to Syria. | Nigel Treblin/Getty Images

Because of sanctions, North Korea should not be importing or exporting weapons, but that hurdle has been easy to overcome. Through years of unchecked trading, it stockpiled cash and other resources, which it uses to manufacture its own weapons. When there’s a surplus, it sells those weapons out to the highest bidder. In one incident, North Korea was caught trying to smuggle chemical weapons to Syria. If you’re not keeping track of world affairs, that’s one shady and generally-despised government trying to help out another one.

Culled fromWallstreetcheatsheet

The pension crisis and how to survive it - we explain all

The state pension fund is running out - Tricia Phillips explains what this means as well as how you can ensure that whatever happens, you can face life after work with confidence

Tricia Phillips

The state pension is groaning under pressure from an ageing population.
A report from Government advisers has revealed the National Insurance Fund, which pays state pensions and other social benefits, will run out of cash in the 2030s .
This means future pensioners face lower state pensions or younger workers may get slapped with higher National Insurance contributions.
Andrew Tully, pensions technical director at Retirement Advantage, said: “There is no cast-iron guarantee that the system pensioners enjoy today will be around in the same guise in the years to come, so it makes sense to take control of our own retirement future.”

With uncertainty ahead, here’s some top tips and advice...

15 top tips to help you save

1. Don’t rely on the state pension - Whatever your age. The state pension age keeps rising. Young people now face working until their 70s and beyond before they will qualify - and get less than they expected.
   
2. Pensions aren’t as complex as they seem - During your working life, you put a bit of cash away from your earnings each month and that builds up to create a pot of money to see you through retirement. Then you cash them in and buy a pension income.
   
3. It costs less than you think to save - Tax relief on pension contributions is a generous Government giveaway. Every £100 you put into a pension only costs you £80 with tax relief. For higher-rate taxpayers it’s even better.
   
4. Start saving early - In your 20s, or as soon as you start work, is the time to start the long-term savings bug. Andrew Tully says to build up a £100,000 pot by age 65, you’ll need to save £91 a month from age 25, £148 from age 35 and £266 from age 45. This is because of compound interest – where you earn interest on interest over the years.
   
   

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5. Stay autoenrolled in your workplace pension - Don’t opt-out of a workplace pension – it’s turning down “free money” from your employer. Under auto-enrolment, you make contributions into your workplace pension and your boss chips in to boost savings.
   
6. Put in more than the minimum - The current minimum legal contributions into workplace schemes are 1% from workers and 1% from bosses. This increases to 3% from workers and 2% from bosses in April, and to 5% from workers and 3% from bosses in 2019. Some firms will match employee contributions up to a higher level.
   
7. Don’t forget about your pension savings - Don’t leave your hard-earned cash languishing. Keep an eye on it to ensure you’re on track to build up the funds you will need. Take notice of annual statements so you know where you stand and can decide if you need to chip in a bit more.
   
8. It’s never too late to start saving - Workers in their 50s still have time to build up a bit of a nest egg. Chances are you’ll be working until your late 60s, so there is time. Every £1 saved into a pension will give you that plus a bit more in retirement.
   
9. If you’re self employed - You’ll need to sort out your own pension savings. Under 40s can use the Lifetime ISA, which gets a 25% Government top-up on up to £4,000 each year, until age 50. Over 40s will need to set up a private pension. Visit unbiased.co.uk to find an adviser.
   
10. Think you can’t afford to save - If you get a shop-bought coffee each day at £2-plus a pop, giving up one or two a week will free-up cash to save for your older age. Once you start looking at small ways like this to make savings, you’ll be well on your way to a more secure financial future.
    
11. Keep an eye on costs - Fees charged by pension providers can vary and eat into your funds. Jamie Smith-Thompson, managing director of pension advice specialist Portafina, says: “What seems like a small change could make a big difference. For example, reducing your annual provider fees by just 1% could mean £25,000 more in your pot over 20 years.” Check the market for schemes with lower fees and think about switching.
    
    
    
12. Review where - your money’s invested - Ensure your pension savings are working hard for you. Check the funds you’re invested in match your attitude to risk. Keep an eye on how your savings are growing, and move funds if you think you can achieve a better return.
    
13. Flexibility to suit your needs - The pensions freedoms put you in control of when and how you access your savings from the age 55. But be wary of dipping into your pot too soon. Get free advice from the Government’s Pension Wise via pensionwise.gov.uk or call 0800 138 3944 to book an appointment.
    
14. Find old pensions - Most of us will work for a number of employers and it can be easy to lose track or forget about funds from past jobs. Get free help to track down lost pensions from the Government at gov.uk/find-pension-contact-details .
    
15. Don’t let crooks steal your cash - If you get a cold call offering a free pensions review or an investment offer that sounds too good to be true, put the phone down. Crooks are just waiting to rip you off. Don’t rush into transferring funds or accessing savings before ensuring a person or firm is on the Financial Conduct Authority’s register at register.fca.org.uk . Also check the FCA Scam Smart page at fca.org.uk/consumers/protectyourself-scams .
    
    Culled from Mirror Pension
    

Start investing at 50, get a £1m pension pot at 67

Too late to start? Lottie Wride is 46 and has no pension Credit: Jay Williams

• Sam Brodbeck

19 September 2017 • 7:45am

Not long ago, people in their 50s would be deemed to have left it too late to begin saving for retirement. Only a lifetime of pension contributions, allied with some investment growth, could produce a large enough pot to produce a viable income in later life, the conventional wisdom went.
But while “the magic of compound interest” does allow money put aside early to grow spectacularly, most young people do not have much spare cash to invest. Only in middle age can most workers begin to put serious sums aside.

Wages peak in the mid 40s and 50s (with men’s salaries reaching their high point about a decade later than women’s), according to official statistics.

Not only are incomes at or near their zenith in middle age, but two major costs of living are likely to have declined or ceased entirely. Mortgage terms are typically 25 years, meaning that many people who bought properties in their early 20s will be debt free by their 50s.
Likewise, the cost of raising children dwindles once they embark on higher education courses funded by student loans.

In figures: the pension pot you can expect if you start at 50

Generous tax perks on pensions and Isa investments help even those who start to save from scratch at 50 to build a sizeable pot quickly.
A 50-year-old who earns, say, £70,000 a year could, starting from nothing, build up a pension worth £985,800 by 67 if they saved the maximum amount allowed each year.
This figure, calculated for Telegraph Money by pensions firm Old Mutual Wealth, assumes annual returns of 4pc after charges, a realistic rate given today’s investment market, and that the pensions “annual allowance” remains at its current level of £40,000 a year.
Even if annual returns were 75pc lower (at 1pc after charges) the pot would be worth £744,600 by 67.

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Saving £40,000 a year may seem a tall order, but remember that this figure includes the tax relief that is applied to all pension savings. Someone who earns £70,000 a year would have to contribute only £27,000 from their own bank account to add £40,000 to their pension pot.
Someone who pays the basic rate of 20pc would have to spend £32,000 to save the same amount.
If saving through a personal pension, rather than a scheme operated by a company, higher-rate taxpayers will need to claim back the extra 20pc tax relief via a tax return. All pension savers receive relief at the basic rate automatically.
Under “automatic enrolment” rules, employers are required to save into a pension on your behalf. Many firms will match the money you save, capped at a proportion of salary; 5pc is a typical figure.
When it comes to taking money out of your pension in retirement, you can take 25pc as a tax-free lump sum and then pay income tax on further withdrawals, just as you would on any other income.
Isas – another main option for building up a pot of savings for retirement – work the other way round: you contribute out of your after-tax income but make withdrawals tax free. In the 2017-18 tax year you can put up to £20,000 into an Isa. Saving at that level for the same period as the pension example (17 years) with 4pc returns would produce a portfolio worth £372,295.
Since the “pension freedom” reforms were introduced in 2015, unspent pensions have been able to pass down the generations extremely tax efficiently. Isas, on the other hand, form part of your estate on death and will be subject to inheritance tax.
It can, therefore, make sense to hold a combination of pensions and Isas in retirement, spending the latter first if you want to maximise your legacy.

Is the decade before you retire the most important?

While some begin to invest only when they reach their 50s, millions of us have been squirrelling money away for decades.
New research produced by Aegon, the insurer, offers useful insight into the relative importance of investment gains and your actual contributions for those who started early. In essence, investment returns become gradually more important, relative to the amount you save (see graphic, up).
If we look at someone who has saved for 40 years, the analysis found that the saver’s contributions accounted for the bulk of the portfolio’s value in the first 30 years – £83,484 against £71,836 from investment returns.
Yet in the last 10 years of investment, the opposite was true. During that period, investment returns were far more important, accounting for £80,680 of the total, against £33,844 in contributions. However, as Aegon’s Nick Dixon pointed out: “It’s important to remember that investment losses will have as big an impact as investment gains.”
Mark Fawcett, the chief investment officer of Nest, the government-backed provider of workplace pensions, said: “This research debunks investment orthodoxy that says you should maximise risk when you’re young. What really matters are investment returns once you’ve built up a decent pot towards the end of your working life.”
Nest, which runs the savings of more than five million people, based its investment strategy around this concept. It takes relatively little investment risk for younger savers on the grounds that any missed returns can quickly be recovered once pot sizes are larger.

Telegraph