Retirement Living

Time for pastures new?

The Government has unveiled plans to incentivise older farmers to retire in order to bring new blood into the sector

Ministers hope that the Government’s planned ‘exit scheme’ for farmers, which has been out for consultation and is awaiting a final report, will create opportunities for a younger, more eco-savvy generation to own farmland. The average farmer could receive a lump-sum payment of £50,000 (capped at £100,000 for those with most land) as part of a major overhaul of agricultural grants ultimately aimed at protecting the environment.

Launching the consultatation, Environment Secretary, George Eustice, explained: “We need to address the twin challenges of helping new entrants fulfil their dream and gain access to land, while also helping an older generation retire with dignity. Our exit scheme will offer real incentive to confront what can often be a difficult decision.” Nearly four in 10 UK farmers are over the age of 65, with the average aged 59.

Two-tiered strategy

The consultation focused on two key areas. The first builds on evidence

that some farmers would like to retire or leave the industry but have found it difficult for financial reasons. The proposal is to offer a lump sum to help them manage this, and the consultation is seeking views on who should be eligible and how payments should be calculated. The second area under consideration is delinked payments. This addresses the fact that direct payments currently made through the basic payments scheme are “It’s a poor value for money and based on how much way of life land a farmer has, which inflates rent and can for some, not a job to retire deter new entrants. The Government plans to phase out direct payments over a seven-year period, and potentially separate the payment from the amount of land farmed, from 2024. from” Richard Corbett, partner with Roger Parry & Partners property services based in Oswestry says, “We wouldn’t disagree with the Environment Secretary when he says that new entrants are the lifeblood of any vibrant industry. However, he has to appreciate that farming the land is a way of life for farmers and it is not necessarily seen as a job some would want to retire from as they get older. Perhaps The average age of the this lump sum could work for those who do wish to leave farming UK’s farmers is nearly 60 but find it difficult to generate the capital to do so.”

MILLIONS BAFFLED BY JARGON AND FEES

Perplexed by pensions? You’re not alone…

Research by online investment service Wealthify suggests that 14 million of us are confused or overwhelmed by the subject of pensions. Only 14 per cent feel organised and just 11 per cent say they feel “in control” of their future retirement fund.

The independent research, conducted for Wealthify amongst 2,000 UK adults and published at the end of 2021, found that one in three pension holders has felt worried about making the wrong decisions, while a further third have little confidence planning for their retirement because of the common use of jargon.

Making sense of the language

While a large portion of the public understand the terms ‘personal pension’ and ‘workplace pension’, only one in five knows what ‘SIPP’* means, suggesting many are unclear about the type of pension they hold. And only a third understand the meaning of ‘auto-enrolment’, despite it being compulsory in all workplaces since 2012.

Those wanting help with their retirement planning can use

Many of us need a helping hand

Wealthify’s simple (and free) four-step pension calculator to find out how much they could have in their pension pot and what they might need for a fulfilling retirement. Chief executive Andy Russell says: “Many of us work hard for most of our adult lives and along the way we collect and pay into pension pots to help fund a healthy and happy retirement. But it can be difficult to keep track – particularly when you change jobs and leave one pension pot behind to start a new one with your next employer.At Wealthify, we aim to inspire anyone, regardless of background, age or experience, to build their wealth and the future they want.” See wealthify.com