You are here: Home - Retirement -

UK pensioners expect fall in spending power

0
Written by:
30/07/2012
Eight in ten pensioners expect the value to their pension will decline due to inflation, according to AXA Wealth.

The providers’ report, Cost of Living in Retirement – which polled 200 pensioners – found British retirees know they will face falls in income but are under-prepared.

Simon Smallcombe, head of guaranteed distribution for AXA UK said: “It’s very concerning that despite people knowing their purchasing power will reduce, they aren’t doing anything about it.”

The report found many pensioners (69%) had not made sufficient plans to counter inflation as a result of early retirement due to ill-health or redundancy.

But half (58%) of respondents admitted to having not sought any financial advice prior to retirement. One in seven waited until just before they retired. And two-fifths (45%) said they have never calculated their pension benefits.

As a result, a third reported they are feeling anxious about money. Sixty per cent said they would need an additional £4,000 a year to feel comfortable.

Smallcombe said: “Retirement is supposed to give you the freedom and opportunity to pursue leisurely interests, so to see food and heating bills presenting a problem is a worrying situation for today’s baby-boomers.

“Retirement planning should be an on-going process that can adapt to changing circumstances using a combination of products; perhaps with guaranteed products forming a core income, supplemented by capped or flexible drawdown as well as income from other tax wrappers as required. Advice is not just something you seek a few months before your last day at work.”

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Insurance Experts: Are you fully insured? Click here to get a quote.

For a free quote or to speak with an insurance expert call 0800 1218744

Woodford’s new income fund drops out of top traded list

Star manager Neil Woodford’s Income Focus fund has dropped out of a platform’s top traded list, just five mont...
Woodford’s new income fund drops out of top traded list

Tesco expected to post significant write-offs

Tesco is predicted to unveil the biggest loss in its 100-year history, according to analysts.
Tesco expected to post significant write-offs

Why selling on eBay just got more expensive

Thousands of people selling goods on eBay will see the cost of using the site increase. Here are the best alte...
Why selling on eBay just got more expensive

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

Tesco expected to post significant write-offs

Tesco is predicted to unveil the biggest loss in its 100-year history, according to analysts.

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2195211-house-in-palm-of-hands
House prices ‘fall for the first time’ in 2012

UK house prices fell for first time this year in July, with even the traditionally stronger markets of London and...

Close