Elderly in UK may face pension woes
Source: Agencies |
December 1, 2012, Saturday
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Print Edition
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BRITAIN'S over-50s are in blissful ignorance of how little their pension pots will pay out and need an urgent financial health check if their retirements are to be as comfortable as they expect, an industry report said.
Workers approaching retirement in the next 15 years need to see their pension pots grow by almost 80 percent to meet their expectations, the National Association of Pension Funds said yesterday.
"Millions of people are within a decade of their state pension but have still not thought about how long their retirement might last," Joanne Segars, chief executive of the NAPF, said in a statement.
The burden of managing a pension at retirement has fallen on employees, as defined contribution (DC) pensions, rather than final-salary schemes, become the more dominant form of retirement saving.
The introduction of the government-backed auto-enrollment scheme - where people are required to opt out rather than opt into retirement saving - could lead up to 8 million additional workers being signed up for pensions, which will likely be DC pension memberships.
Yet a third of workers aged 52 to 64 remain ignorant about what their private pension income may provide in retirement, while 59 percent of workers have never thought about how many years of retirement they need to finance, a report by the Institute for Fiscal Studies and supported by the NAPF said.
Women in their 50s are living to an average of 88 - four years more than expected - while men are living to 85, beating life expectancy by around two years, when compared with national projections of life expectancy, the report said.
Workers approaching retirement in the next 15 years need to see their pension pots grow by almost 80 percent to meet their expectations, the National Association of Pension Funds said yesterday.
"Millions of people are within a decade of their state pension but have still not thought about how long their retirement might last," Joanne Segars, chief executive of the NAPF, said in a statement.
The burden of managing a pension at retirement has fallen on employees, as defined contribution (DC) pensions, rather than final-salary schemes, become the more dominant form of retirement saving.
The introduction of the government-backed auto-enrollment scheme - where people are required to opt out rather than opt into retirement saving - could lead up to 8 million additional workers being signed up for pensions, which will likely be DC pension memberships.
Yet a third of workers aged 52 to 64 remain ignorant about what their private pension income may provide in retirement, while 59 percent of workers have never thought about how many years of retirement they need to finance, a report by the Institute for Fiscal Studies and supported by the NAPF said.
Women in their 50s are living to an average of 88 - four years more than expected - while men are living to 85, beating life expectancy by around two years, when compared with national projections of life expectancy, the report said.
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