Paul Leatherbarrow, Liverpool
The Baby boomers grow old and start to put a strain on state pension could you live on £97.65 a week (£156.15 for a couple, 2010/2011) the basic state pension is insufficient for many to provide a comfortable retirement.
The state pension is likely to come under more pressure in the future as the baby boom generation reaches retirement age and the ratio of the working population to the retired population reduces Whether you dream of spending lazy days in the garden, holidays abroad or simply time with your grandchildren, a pension plan could give your retirement plans a healthy boost With many employers closing their company pension schemes and the government proposing to increase the state pension age to 68, these gloomy statistics mean we all need to take greater responsibility for planning our retirement.
Your retirement should be something to look forward to – a chance to take up new hobbies, spend more time with family or friends or travel the world – not to worry about how to make ends meet. What are the options available to you if you want to do more than rely on the state when you retire? Did you know that: 1.4 million Pensioners survive on an income of £5,000 a year or less? 12% of people over state pension age have had to continue working full or part time, to supplement their pension income. There are currently 13.4 million people who are either not saving or are saving too little in a pension to provide for an adequate retirement income. Will you be able to relax and enjoy your retirement? Are you saving enough for your retirement? Pensions are financial tools whose purpose is the provision of money in old age.
Do you know how much of a pension you will get when you retire? Many people are surprised to find how low their expected pension is. Pension savings neglected by 40% of Brits Two in five Brits aged between 55 and 64 are saving nothing at all per month towards their retirement. Brits who are approaching retirement are in 'far worse shape' financially than those aged 65 and over. For instance, one fifth of 55 to 64 year olds have just under £8,600 saved for their retirement. In contrast, a typical over 75 year old, who has been retired for a number of years has savings of almost £19,000, while a typical 64 to 74 year old has savings nearly £14,000.
Meanwhile, the biggest retirement concern amongst over 55s is the rising cost of living. In addition, around one in five people aged 55 or over are concerned about retiring, with 12 per cent highlighting redundancy as an ongoing concern. The report paints a "worrying picture". "Those who are already retired are actually – to a large extent – financially better off than the pre-retirees. Their income might shrink as people retire but the current generation of retiring and long-term retired have a higher incidence of homeownership, lower debts and more savings than the pre-retirees," We would strongly advise people to start saving for their retirement as early as possible, we also need to ensure that those approaching retirement have access to the right information and support to maximise their income in their later years."
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