Morningstar's Guide to Retirement Saving

Pension provision is increasingly becoming the responsibility of the individual. All this week we are arming you with the tools you need to secure the best possible retirement income

Emma Wall 13 April, 2015 | 9:21AM
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Are you retirement ready? We know that Morningstar readers are investing either for, or in, retirement; using our website to arm themselves with the tools they need for the best possible pension income. Recent changes to the way we can access our pension savings make it more important than ever to research your options thoroughly.

Pension provision is increasingly becoming the responsibility of the individual. Employers are doing away with defined benefit pension plans that base income pay-outs on the scheme members’ final salary before they retire. Instead companies are adopting defined contribution pension schemes that base the members' income in retirement on what they have saved while in employment.

Last year, thanks to the auto-enrolment initiative, the number of workers in defined contribution pension schemes surpassed those in defined benefit schemes for the first time.

While it has not yet been confirmed, it is widely anticipated that in time the Government will shrug off its financial obligations to all but the poorest pensioners; wiping the state pension deficit from the books of the public purse would help get the country finances back in the black. As of April 2015, the Government has handed the responsibility of how to spend pension provisions in retirement back to the individual, saying that the pensioners of Britain should be treated as the grown-ups they are.

With both the public and private sectors passing the responsibility of pension provision to the individual it is more important than ever that we get saving early.

Financial education is being included in schools alongside Maths and English as a key skill, but this is too late for a generation who grew up in the easy-borrowing boom prior to the credit crisis.

Lord Hutton recently urged us all to contribute 15% of our income into a pension plan if we wish to have a comfortable retirement.

The message is clear: save as much as you can, as early as you can to avoid pension poverty. But where should this money go?

All this week Morningstar is running a Guide to Retirement Saving to help give our readers the tools to set up a well-researched, tax-efficient pension plan – and help make sure that those who have already retired continue to make their money work hard for them.

Monday: Investing for Retirement

Where should you be putting your cash to maximise your pension pot?

How to Save for Retirement

3 Growth Funds for a Retirement Portfolio

3 Value Stocks for Your SIPP

3 Funds for Your SIPP

Is Your House Your Pension?

Tuesday: What are the Pension Freedoms?

We explain the recent changes to the way you can access your retirement cash

Why You Should Still Consider an Annuity

Are We Doing Enough to Prepare for Retirement?

How Pension Providers Will Meet Your Cash Demands

What is Pension Auto-Enrolment?

Should You Cash in Your Annuity?

Cash for Pensioners and Tax Cuts for Savers in Budget 2015

Wednesday: Investing in Retirement

With life expectancy growing you need to make your investments last

How to Invest a Post-Retirement Portfolio

Where Can Investors Fund Income?

Can Alternatives Provide Income in Retirement?

3 High Yielding Stocks for Retirement Income

How Do You Know if You're Ready to Retire?

Thursday: Where Are You Investing Your Pension?

We ask our readers how they are saving for retirement

Where Are Investors Putting Their Pension Cash?

Britons Bank on Cash Savings to Fund Retirement

Investor Views: "I Will Buy an Annuity with Part of My Pension"

Investor Views: "I Paid Any Bonuses Into My Pension"

What Will You Do With Your Pension?

Friday: What the Pension Experts Say

Top tips from the retirement professionals on maximising your pension

What is Pension Drawdown?

How to Maximinse Your Retirement Income

3 UK Equity Income Funds to Boost Your Pension

Hobson: Stocks for Your Pension Pot?

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Emma Wall  is former Senior International Editor for Morningstar