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Expert Tips on Building a Solid UK Pension Plan Amid Rising Costs

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As the cost of living in the UK continues to rise, many Brits are finding it harder to save for retirement. However, with life expectancies also increasing, experts warn that starting a pension plan as early as possible is more important than ever. A recent YouGov survey revealed that 38% of UK residents aren’t saving for retirement, with only 28% contributing up to 10% of their income.

To help navigate the complexities of retirement savings, Euronews reached out to financial experts for their top tips on building a solid pension plan.

Start Early and Save More

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, stresses the importance of saving as much as possible, as early as possible. She suggests that the earlier you start contributing to your pension, the more your investments can grow over time. A simple but effective strategy is to increase contributions every time you receive a pay raise. “You’re not used to having that extra money, so it’s easier to allocate it to your pension,” Morrissey explains.

Negotiate with Your Employer

For those enrolled in workplace pension schemes, Morrissey advises negotiating higher contributions. By default, UK employers must contribute at least 3% of employees’ salaries into pension pots, with employees contributing 5%. Some employers offer more generous contributions, sometimes matching what employees put in. Another option is a salary sacrifice scheme, where employees can reduce their salary and have the equivalent amount paid directly into their pension, benefiting from tax reductions.

Stay Engaged and Monitor Your Investments

Claire Trott, divisional director of retirement & holistic planning at SJP, emphasizes the importance of regularly checking your pension progress. “At least once a year, assess how much you’ve saved and determine if it will be sufficient for retirement,” she advises. Additionally, it’s essential to review where your contributions are being invested. Workplace pension schemes often place contributions into default funds that may not always be the most beneficial for your individual needs.

Consider Alternative Savings Products

In addition to pensions, Lucie Spencer from Evelyn Partners suggests utilizing tax-free ISAs (Individual Savings Accounts) to complement pension savings. Although contributions to ISAs are made from after-tax income, the funds grow tax-free, making them an ideal option for retirement savings.

Be Cautious About Early Withdrawals

While it’s tempting to access pension funds early, experts recommend against this unless absolutely necessary. Early withdrawals reduce the time for investments to grow and may push individuals into higher tax bands if they continue to earn income. The state pension can typically be accessed at age 66, with private pensions available at age 55 (rising to 57 in 2028).

Consolidate Pension Pots

For those who switch jobs frequently, pension pots can become fragmented. Claire Trott advises consolidating multiple pension pots into one to simplify management and reduce administrative hassle. However, it’s important to consider that older pension schemes, particularly those before 2006, may offer better benefits than more recent ones.

Utilize “Carry Forward” Rules

The “carry forward” rule allows individuals to top up their pensions by using unused tax relief from the last three years. For example, high earners can make significant contributions to their pensions, sometimes up to £220,000, if they have unused allowances from previous years.

Don’t Overlook the State Pension

Finally, experts stress the importance of keeping track of your state pension entitlement. To receive the full state pension, individuals need 35 qualifying years of National Insurance contributions. Though state pensions don’t require as much management as workplace or private pensions, they provide a guaranteed income for life, making them a crucial part of retirement planning.

By following these expert tips, UK residents can ensure they are better prepared for retirement, no matter the challenges ahead.

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Financial Influencer Jenny Okpechi Shares How Early Investing Helped Her Build a Six-Figure Portfolio

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Financial influencer Jenny Okpechi, known online as @savvymoneygirl, is championing the power of early and consistent investing after building a multiple six-figure portfolio through smart financial planning and diversified income streams.

Speaking to Euronews, Okpechi emphasized that wealth-building is a long-term process rooted in discipline, education, and strategic action—not overnight success. Her financial journey began at just 16, when she started saving and investing small amounts despite limited resources.

“I started very young and very intentionally,” she said. “I learned to budget, live within my means, and gradually moved from saving to investing in treasury bills, corporate bonds, and stocks.”

Raised in a traditional African household where financial decision-making was often seen as a male role, Okpechi had to push against cultural barriers. “I wanted to prove that women could manage and grow money just as well,” she said. That determination led her to pursue multiple sources of income while also studying, including paid surveys, tutoring, and blogging.

Today, Okpechi boasts eight income streams, ranging from her full-time job as a Scrum Master and a part-time healthcare assistant role, to digital product sales, affiliate marketing, brand collaborations, and investments in REITs, index funds, and stocks. She is also building Moneybestie, a fintech app aimed at improving financial literacy among women and girls.

“I pay myself first and invest consistently. I only invest in what I understand—nothing fancy, just steady and simple,” she said. She credits compound interest and the discipline of regular investing as major factors in her portfolio growth.

Okpechi encourages young people to start investing early—even with small amounts. “Don’t wait until you earn more. Start with £25 a month if that’s all you can. Automate it, and let time do the work,” she advised. “Time in the market beats timing the market.”

Despite her success, Okpechi has faced challenges—from overcoming imposter syndrome in the male-dominated finance and tech industries to battling burnout while juggling multiple roles. She also confronted deep-rooted gender biases that undervalue women’s financial potential.

Her message to aspiring investors is clear: “Learn about money like your financial freedom depends on it—because it does. Talk about money, forgive your financial mistakes, and keep moving forward.”

With Generation Z reportedly beginning to invest earlier than previous generations—at an average age of 19—Okpechi’s story offers both inspiration and practical guidance for anyone looking to secure their financial future.

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U.S. Economy Contracts for First Time in Three Years Amid Tariff Turmoil

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The U.S. economy shrank at an annual rate of 0.2% in the first quarter of 2025, marking the first contraction in three years, according to revised figures released Thursday by the Commerce Department. The downturn was driven primarily by a sharp increase in imports, as businesses rushed to bring in foreign goods ahead of sweeping tariffs announced by President Donald Trump.

The updated gross domestic product (GDP) figures represent a modest revision from the department’s earlier estimate of a 0.3% decline. The reversal follows a 2.4% expansion in the final quarter of 2024.

Imports surged at a staggering 42.6% annual rate during the January-to-March period—the fastest pace since late 2020. That influx of foreign goods, though technically counted as part of consumer spending, subtracts from GDP since it represents consumption of items not produced domestically. The import spike alone shaved more than five percentage points off overall economic growth.

At the same time, consumer spending weakened significantly, and federal government expenditures dropped at a 4.6% annual rate, the steepest decline in three years.

“The rush to import goods ahead of the tariffs created a temporary drag on growth,” said a senior Commerce Department official, noting that the effect is expected to ease in the second quarter.

Despite the overall contraction, underlying economic indicators remained relatively strong. Business investment soared by 24.4%, and inventory accumulation—prompted by concerns over supply disruptions—contributed more than 2.6 percentage points to GDP. A core measure of economic activity, which excludes volatile elements like exports and government spending, rose at a solid 2.5% annual pace, down slightly from 2.9% in the previous quarter.

President Trump’s trade policies have introduced a new layer of uncertainty for U.S. businesses. The administration imposed 10% tariffs on a broad array of imports, alongside specific duties on steel, aluminum, and automobiles. However, a federal court on Wednesday struck down the blanket tariffs and several country-specific levies, ruling that the president had exceeded his legal authority.

Economists suggest that the first-quarter weakness may prove temporary but warn that the ongoing trade disputes could weigh on growth throughout the year. The Commerce Department will release its final estimate for first-quarter GDP on June 26.

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Stellantis Appoints Antonio Filosa as CEO Amid Profit Slump and Strategic Challenges

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Stellantis has named Antonio Filosa, its Chief Operating Officer for North America, as the company’s new Chief Executive Officer, following the unexpected resignation of former CEO Carlos Tavares in December. Filosa, 51, will formally assume the role on June 23, pending approval at an upcoming shareholder meeting.

The announcement, made on Monday, comes at a turbulent time for the world’s fourth-largest carmaker, which has been grappling with slowing sales in key markets and internal disagreements over the pace of electrification.

Stellantis, the multinational automotive group behind 14 brands including Peugeot, Fiat, Chrysler, Citroën, and Jeep, issued a profit warning last September due to slumping demand in the United States and Europe. The warning preceded the abrupt exit of Tavares, who reportedly clashed with the board over his aggressive push for a full transition to battery electric vehicles (BEVs) in Europe by 2030. The board had advocated for a more gradual approach.

Filosa’s appointment signals a strategic reset for the group, which is under pressure from weak North American performance, rising global competition, and trade policy uncertainties, particularly from the United States. Former President Donald Trump’s tariff stance on foreign automakers continues to cast a shadow over multinational manufacturers like Stellantis.

In its official statement, the company praised Filosa for his “proven track record of hands-on success during his more than 25 years in the automotive industry,” as well as his “unrivalled knowledge of the company and recognised leadership qualities.” The Naples-born executive has held various leadership roles across Stellantis’ global operations and was promoted to head of North America shortly after Tavares’ departure.

During his tenure in North America, Filosa has worked to reduce bloated inventories and restore dealer confidence following months of sluggish sales. As CEO, he will now oversee a vast portfolio of brands and be tasked with balancing profitability, innovation, and sustainability across diverse markets.

Filosa’s leadership will be closely watched as Stellantis navigates regulatory shifts, intensifying competition in electric vehicles, and a volatile geopolitical landscape. The shareholder meeting to confirm his appointment is expected to be announced in the coming days.

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