Friends Provident highlights pensions concerns

Thu, 21 Apr 2005

Over half a million Britons could receive £10,000 less than they need from their pension during each year of retirement.

That is according to new research from Friends Provident, which revealed that 68 per cent of people feel they will be "worse off" when they retire.

On average, people say they will need between £20,000 and £24,000 a year to maintain the lifestyle they want.

However, realistically they expect to only be getting about £10,000 to £12,000 - simply because they are not saving enough in pension schemes.

"The bad news is that Britain is sleepwalking towards hard times in retirement," explained the head of pensions marketing for Friends Provident, Jeremy Ward.

"These findings are a wake-up call to warn people to start putting enough money into a
pension, sooner rather than later, in order to enjoy a more financially secure retirement."

In total, the 621,000 people who are expected to retire this year could experience a pensions shortfall of around £6 billion for each individual year after they stop working.

But despite realising this, some 27 per cent are still failing to save any money at all.

And a further 53 per cent claim they simply "don't have enough money to put aside for a pension".

Mr Ward added: "It is not rocket science - it is common sense."

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