According to his sister Rachel, when Boris Johnson was a young child he aspired to become ‘world king’. 

One way or another, he’s made more progress towards that goal than perhaps anyone, including Rachel, would ever have imagined.

Given he was born in New York, what’s to stop him looking to go one bigger on the housing ladder and aim to move from 10 Downing Street to 1600 Pennsylvania Avenue, otherwise known as the White House? In doing so he would become the second blond bombshell at that address and whilst I appreciate there are other criteria involved, Boris doesn’t seem to worry too much about the details.

As a young child, my ambitions were somewhat more modest and short term, perhaps involving a LEGO model or trying to negotiate another half hour before being sent to bed. Winding the clock forward to 2019 my ambitions arguably remain modest, but at least include some with a little more sophistication and a longer-term outlook. Indeed, working in the pensions industry does mean I’ve little excuse if the latter omit something in the vein of achieving a financially comfortable retirement.

I can’t believe Boris needs to worry too much about his retirement income...

...and even if he did I doubt he would take the time with other matters taking precedence.

In any event, given the UK Prime Minister enjoys an annual salary of £150,402 and membership of a defined benefit pension scheme this blog is not really aimed at him, although it is possible that his pensionable service will be limited.

Increasingly, most of us are relying upon defined contribution pension arrangements to provide our income in retirement.

Unlike many individuals I speak with, I like to think I’ve a pretty good grip on my retirement ambitions and what it will take to achieve them. In April this year we saw the second and final phased increase to minimum workplace pension contributions occur which means most employees now have a total of at least 8% or 9% of their pensionable earnings being invested. Unfortunately, this is unlikely to achieve what they would hope and long ago I bit the bullet and elected to pay more than the minimum required (which thankfully I’ve been able to do).retail-piggybank

I would urge everyone to think about their retirement income goal and then use an online pension calculator to forecast what they are on course to achieve. In doing so be sure to include all private pension benefits and the State pension too.

I don’t think I’m alone in thinking that pensions do not make the current top 10 on the ‘to do’ list for Boris and his gang and so there will be no legislation anytime soon to auto increase those minimum contribution levels.

As such, it’s realistically down to you to overcome that inertia and consider if your pension contributions need reviewing. Boris has one important deadline of 31 October so why not use this one yourself to check your plans. Irrespective of what Boris’ negotiating skills will have achieved by then it’s safe to say the world will keep turning on its axis and you will continue to get older, so why wait any longer?

Posted by Mark Hanson

Topics: Lifestyle, financial planning

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