Retirement
UK pensioners expect fall in spending power
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
There are 0 Comment(s)
How to get 7% interest without tying up your savings for years
You don't have to lock your money away for years to get above-average returns on your savings.
Morrisons slashes prices for the third time to lure shoppers
Morrisons has cut the cost of nearly 500 items, while 600 prices have been locked for the next two months, as...
Turbo charge Santander’s market-leading 4.15% one-year ISA to 4.65%
Santander has boosted the interest rates paid across its ISA range, taking some deals to the top of the best b...
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...
A quick guide to guarantor loans – in association with Guarantor Loan Comparison
Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...
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.
Money Tips of the Week
© AE3 Media Ltd, Floor 7, Lincoln House, 296 - 300 High Holborn, London WC1V 7JH, Company.