July 25 2014 Latest news:
Adam Aiken, Editor
Sunday, October 23, 2011
Nearly half of all adults do not expect to receive an income during retirement from a private or company pension – a further sign of increasing pessimism surrounding our finances in later life.
The financial strain is set to get only bleaker thanks to the rising cost of living and longer life expectancy, but the results of a study by MGM Advantage highlight just how grim things could be for millions of people.
If the study’s findings are replicated across the general population, it would mean about 20 million people do not expect to receive a pension, other than from the state. As far as alternative sources of income are concerned, the situation looks to be even more worrying – a quarter of adults have no idea what they will live on during their later years.
The problem is not confined to younger people, either, who might be expected to have greater fears about how the pensions landscape will look in a few decades’ time.
The research showed that more than a third of those aged 55-64 do not expect to get retirement income through a pension and will be relying on other savings or investments.
MGM Advantage said this was “highly concerning for an age group that should be fully engaged in financial planning for retirement and have an established pension”.
Craig Fazzini-Jones, director at MGM Advantage, said the findings of the study made it even more important that workers of all ages explored their pension-saving options.
“With tax relief for all pension options and employer contributions for company schemes, pensions are the best way to save for retirement,” he said. “Opting out of a company pension scheme is essentially throwing money away, so it is crucial that people discuss pension options with their employers.
“It is also concerning that so few know how they will get their income in retirement. However, it is never too late to take action and even at the point of retirement many people can increase their retirement income simply by shopping around for an annuity.”