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Babyboomers head towards retirement troubles

Babyboomers head towards retirement troubles

Category: Pensions

Updated: 19/03/2010
First Published: 19/03/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Confusion amongst the babyboomer generation about their finances is rife, suggesting advice is badly needed if people are to effectively prepare for retirement.

Britons aged between 45 and 65 are often perceived as a lucky generation, having enjoyed a more healthy and comfortable standard of living than those before them.

However, a survey by AXA Wealth has found that most are concerned about managing their finances and making their funds last in a long period of retirement.

A rise in life expectancy means that retirement for many of the babyboomer generation could last almost as long as their working lives, and many are worried they are not financially prepared.

Twenty per cent of respondents aged 45 to 65 said they don't know how much income they will need to retire, while 30 per cent admitted to knowing little or nothing about their pension arrangements.

In addition, four in ten have no idea how much a £100,000 pension fund is likely to pay each year, and nine in ten think the State Pension will be insufficient to live on.

Just three in ten babyboomers said they were fully prepared and happy about their retirement.

David Thompson, managing director, wealth investments and distribution, AXA Wealth, said babyboomers need to be helped in identifying their needs and to make sure they have suitable plans in place to make their retirement plans a reality.

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