The government's proposals to reform the pension system will still mean that Britons have an income shortfall, an expert has claimed.
As part of the government's changes outlined in the Pensions White Paper, the link to earnings will be restored, while the retirement age will be raised to 68.
However, Fidelity International has warned that this will have a seven per cent impact on those reliant on a pension after 2044, "leaving many people with less than they were expecting".
The company states that UK households will face 60 per cent fall in income after reaching retirement.
Simon Fraser, president of the institutional business at Fidelity International, commented: "People should not be lulled into a false sense of security by these reforms."
"On current trends, people are still facing a 50 per cent drop in income unless they start saving more now."
According to recent research from JPMorgan INVEST, 64 per cent of UK adults are facing financial challenges upon reaching retirement as they are not making adequate savings towards their pension pot.
Pension reforms still leave shortfall, expert claims
Pensions Quote Line
0845 108 0505
Pension reforms still leave shortfall, expert claims
Thu, 16 Nov 2006
Recommended links
Brits facing challenges after reaching retirement, study showsMany willing to work on a pension to keep home, study shows
Use our pension enquiry form for any pension queries
Government pension reforms fail to offer security, expert claims
Planning For Retirement
| pensions news |
|---|
| Sipps need to be taken to where the most money is - Thu, 02 Sep 2010 |
| NAPF: Pensions tax relief changes risk ensnaring non higher earners - Wed, 01 Sep 2010 |
| Pension fund deficits a worry for workers - Tue, 31 Aug 2010 |
| More News |
Pensions Newsletter
Monthly pensions news, provider info & more.
Transferring a Pension
Learn more about pension transfers and enquire about transferring your pension.
SIPPs
Read up on Self Invested Personal Pensions and take control of your pension fund.