Is there a pension shortfall on the horizon for the over 50’s?
The Institute of Fiscal Studies (IFS), issued a report stating that many over 50’s are not adequately prepared for retirement and may feel short changed when converting their pension into an annuity due to the low annuity rates on offer.
The report indicated that women’s life expectancy has reached 88 years but many are under predicting by around 4 years, while men are under predicting by around two years to 83 years instead of the national projection of 85 years. This may leave many without enough savings or a large enough pension pot to cover their retirement.
“Fortunately, people are going to live longer than they think, but they are not planning for it, so they might find their savings and pension do not stretch far enough,” said Joanne Segars, Chief Executive of the NAPF.
Joanne also said “The report calculated that one in four may have to add at least £60,000 to their pension pot before retirement, in order to meet their expectations.”
So without delay why not conduct a health check on your finances, our financial consultants are available to help you regarding your current pension and will ensure you make the most of your savings pot.