Millions risk poverty by failing to plan pensions
WORKERS in their 40s and 50s are risking poverty in old age as they refuse to tackle pension planning, a survey revealed yesterday.
Research showed that 73 per cent of people aged 45plus are longing for the freedom that retirement brings.
But 46 per cent of those with a pension have no idea what it is currently worth.
Alarmingly, 19 per cent have no pension at all, found savings company Standard Life.
The poll found 67 per cent of Britons aged 45 and over are hoping for a shift in lifestyle and keen to retire early before the state pension age.
However only 10 per cent have increased the amount they are saving into their pension to help make this happen.
Retirement expert Steve Wilkie, of Responsible Life, said: “These figures paint a worrying picture of pension saving in this country.
“Too many people view saving into a pension as a chore. They don’t see pension saving as something to think about today when they have bills to keep on top of.
“Most people would rather just see pension payments leave their wage packets each month and then forget about it, knowing there will be a nice retirement income waiting for them at the end.
“They certainly don’t want to, or don’t feel they have the time to, check their pension pot every month.
“But the days of final sal-ary pensions and promises of a healthy retirement income are a distant memory.
“Most employees now have to build up a pension pot over the course of their careers. There’s no longer a guaranteed income at the end, and there’s a far greater responsibility on the individual to build up a pension pot and keep track of how it’s performing.”
Once people reach 55 (57 from 2028), they can benefit from pension freedoms which allow them to start withdrawing money from their pension savings.
However even among those aged 55-64, 45 per cent still have their eyes shut and do not know what their pension savings are worth.
Jamie Jenkins, a personal finance specialist at Standard Life, added: “Retirement is changing and life after work in the future will not look the same as it did for our parents or their parents.
“Many of us might be dreaming of what we are going to do when we retire.
“However, without a plan in place these dreams are likely to stay just that.”