Finance related figures from the Office for National Statistics show that 48% of people surveyed aged 16 to 24 from July 2016 to December 2017 said that they would not be able to make ends meet for longer than one month if they lost the main source of income coming into their household. This was compared to 26% of all people surveyed.
44% of people reported that they would not be able to make ends meet for longer than three months if they lost the main source of income coming into their household. This fell slightly from 46% in July 2014 to June 2016.
44% of thought employer pensions were the safest way to save for retirement.
42% of people who are self-employed said investing in property was the safest way to save for retirement.
17% of people aged 16 to 24 felt that they knew enough about pensions to make decisions about saving for retirement. This was compared to 42% of all non-retired people who were surveyed.
Why the interest in these figures? Two main areas are interesting.
The money and the finances people have
These figures highlight that a significant number of people and household do not have much ‘spare’ money for emergencies or changes in the income and household. In family cases, the cases that hit the headlines and are on the front of the newspapers generally tend to be those where this is a lot of money and assets. This is not the general experience of most families going through separation and divorce. Most families are managing as ‘Team Family’ but if that breaks down, there is not enough on the face of it to go round for both to live separately and to the same standard as during the marriage.
For those families, specialist, experienced advice is even more important to make the most of the limited resources they have and to think about resolving matters in a proactive, modern way – not just making applications to the court.
Pensions
There is no surprise at the number of people saying that they did not know enough about pensions to make decisions about saving for retirement. Pensions are difficult and the options are extremely varied with multiple issues to consider about the pensions funds, cash lump sum draw down, tax consequences and outcome.
Our Karen Dovaston was part of the consultation for the Pension Advisory Group (PAG) looking at how pensions are dealt with in family law matters. They are in the process of putting together their report now. The PAG is formed of pension experts, lawyers and researchers with a particular interest in pensions and how they are addressed in family matters. They are hopefully soon to report on particular areas to consider with pensions. Even lawyers can find pensions difficult.
Pensions now can be of significant value and sometimes as significant as the equity in the family home. They should not be disregarded and sometimes, experts are needed to advise further about pensions. That is not as expensive as you might think and can be very helpful in getting matters resolved.
If you are separating or divorcing and you need help with sorting out your finances, contact us. We have many years’ experience of dealing with all types of cases – from those with significant assets to those with limited money. We aim to be proactive and keen to resolve your matters at the pace you want.