44 PhoneboxMagazine ADVISCN INDEPENDENT FINANCIAL ADVISERS brings you Finance Matters New research shows that more than 'Auto Enrolment' is needed We are now well into the roll-out of Auto Enrolment which sees employers having to provide a pension for their employees, unless the employee opts out. The process started in October 2012 for those companies employing 120,000 or more and each month this limit drops until in April 201 7 all employers will be included. The amount of contributions made will eventually be 3% from the Employer, 4% from the Employee and 1% via tax relief, totalling 8% of salary. However, there is concern that this will leave people assuming that an 8% contribution rate is enough for an acceptable level of pension whereas the latest annual Pensions Report* from Scottish Widows suggests otherwise. The benchmark they use is 12% of all earnings consistently between the ages of 30 and 65, a definition arrived at following Lord Turner's Pensions Commission which established that this level, in combination with state pensions, would provide an adequate replacement income. For someone earning £25,000 a year that equates to contributions of £250 per month. Interestingly, however, in the Scottish Widows research the figure of £25,000 also came out as the average income consumers say they would need to have a comfortable retirement. This requires a contribution of not £250 per month but £1,000 per month. How many people are prepared to commit to this level of funding is debatable. One message that has been relayed by advisers and pension providers for years is that starting early is one of the keys to enjoying a good level of pension. Auto Enrolment should certainly help with this, although another of Scottish Widows' findings was that only 37% of those aged 22 - 29 expect to stay in their Employer's scheme. At the other end of the scale, another option for those that do not start to save early is to work longer. This is generally an unpopular outcome at present, although with those in the younger age brackets growing up without a fixed State Retirement Age, this may become more acceptable. If you would like to discuss or review your current financial arrangements or your general retirement planning, then please call us. Remember, initial meetings are free and we are happy to come to see you in the comfort of your own home. See our advert below. This a icle does not constitute advice and should not be taken as a recommendation to undertake any course of action mentioned without consulting a relevant professional. * - figures from Scottish Widows UK Pensions Report 2013 ...if you had invested £1,000 in the best performing Investment Management Association {IMA) Investment Fund at the beginning of 2012 it would have been worth £1, by the year end, but if you had chosen the worst, it would have been worth just £570! This is a clear indication of the importance of selecting the most suitable funds and the need for diversification. Advison can help you construct a portfolio of investments that take into account your aims, attitude to risk and timescales. Why not contact us today for a free initial meeting. • ensure you have a clear financial plan for the future • provide protection and peace of mind for your family • make the most of your hard earned savings and investments • save for your retirement • minimise your personal tax liabilities • protect your estate for your beneficiaries ...and give you access to ongoing advice and support Our financial advisers will help you to: