There’s been some pretty scary news from an outfit called Partnership. According to them (they specialise in annuities and long-term care), millions of UK workers are heading for an impoverished retirement. Partnership have revealed the extent of a savings black hole that will leave millions of pensioners trying to survive on less than £10,000 a year.
It’s pretty obvious that people are not saving anywhere near enough for their retirement years.
Apparently, almost 90% of all pension pots are less than £50,000 and over the six years to 2009, 77% of all annuity transactions have been for less than £30,000.
Philip Brown, Partnership’s Head of Retirement Products, said: “Put simply, our figures show that most average men and women retiring in the UK today can look forward to a State pension of under £6,000 per year, plus a private pension of around £2,000 a year.
He went on to warn that “Today’s average wage for men and women is hovering around £26,000, so in other words they will be obliged to live on a reduction in income of up to 70% when they stop work”.
Either we’re going to have to work far longer than we expected or we are going to have to come up with some other way of supplementing our retirement income.
The Retirement Revenue website offers a range of ideas for earning money in retirement and it’s well worth a look. You can get there from here.
Be well.
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