Last week, Codehouse’s Matt Tilbury, was fortunate enough to be invited to attend 7IM’s 2018 roadshow entitled “The Retirement Challenge” at the Four Seasons, Park Lane. The roadshow is currently running over a number of weeks at venues across the UK. The aim is to inform and inspire independent financial advisors across the UK.

Justin Urquhart Stewart, Co Founder and Head of Corporate Development, 7IM, said:

Navigating the retirement maze almost certainly hasn’t got any easier. With increased regulation, greater choice, and increasingly complex client needs, these roadshows are intended to give advisers some practical steering points from some of the UK’s leading experts.

This London event saw 200 plus financial advisors come together to hear from a number of expert, and entertaining, speakers. Additionally, the 7IM investment team discussed the economic and political backdrop, the risks and opportunities, and the challenges of demanding valuations, low bond yields and unusually low volatility.

The calls to action for the day were “Save More – Invest Better – and for the Long Term”.

7IM also showed off the new version of the 7Imagine app including My Future and My Money functionalities. The app uses gaming technology to ensure an immersive and intuitive set of interfaces. My Future allows advisers and investors to capture details about family or individual finances, including any number of streams of income, properties, other assets and expenses, to help identify how sustainable their finances are and if/when their retirement income will run out.

Financial advisor attendees also got to see a sneak preview of some of the new website features developed by Codehouse and designed to help the advisor tailor packages for their clients.

Some interesting facts from the day…

The number of workers in a Defined Benefit scheme has fallen from 34% to 7% in the last 20 years. Most of us are now contributing to a Defined Contribution scheme which means our own personal pension pot size is a direct consequence of the pot’s performance in the market.

Living to 80 years of age is now twice as likely as it was 30 years ago but the state retirement age is still the same. Your private pension money will have to last longer. More people are aged 90 and over than ever before. 

In general, the older age groups have grown faster than younger ages resulting in an older overall age structure. This means that the draw on the state pension coffers is going to get significantly larger making it unlikely the state pension will get more generous in future!

Add to this the fact that low interest rates are hindering wealth accumulation and the future looks tough.

You can’t rely on winning the lottery and the state pension won’t keep you in clover so, for a comfortable retirement, start saving soonest.