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Pension savers told to start sooner

Pension savers told to start sooner

Category: Pensions

Updated: 17/08/2009
First Published: 17/08/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

More needs to be done to encourage people to save for their retirement, after research revealed too little was being saved and too late.

Four out of every five independent financial advisers surveyed by AXA Winterthur Wealth Management expressed concern that their clients were not putting enough money aside for their later years.

Furthermore, 21% of advisers believed their clients did not have a firm understanding of the risks or possible rewards of investment.

With life expectancy improving, it is likely many people will spend 20 to 30 years in retirement, yet funding that period can be costly.

Depending on personal circumstances, the current state pension is £95.25 a week for a single person and £152.30 a week for a couple, so for many, funding their own pension pot is the only way they will have enough money to live on.

However, a pension fund of £100,000 only produces an annual income of just over £5,000 over a 20 year period.

"I don't think a lot of people realise just how long their retirement can last," said Mike Morrison, head of pensions development at AXA Winterthur Wealth Management. "We are all living longer, and most of us would like to at least maintain our current lifestyle. The only way to do that is to start saving and keep saving."

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