Employee reward and benefits news
Annuity rates and longevity 'proving to be tough' for pension provisions
People are finding there are a number of problems in later retirement due to a variety of rates and long life expectations, it has been revealed.
Keith Churchouse, director of Churchouse Financial Planning, said that many people expect their pensions to be insufficient, mainly due to the generation they arrived in: the baby boomers.
He argued that there has been "a glut" of baby boomers that have gone through the pension system in the last five years and have retired with what is believed to be a reasonable pensionable income.
However, another batch of people is starting to emerge that includes individuals who have not had the comfort of a final salary pension scheme or who did not make sufficient savings in their retirement planning earlier in life.
"We're certainly seeing many people coming through in retirement now who are finding the level of pension that they will get extremely disappointing. That also lies with the longevity of people's lives and also the low annuity rates that are applicable at the moment."
It follows statistics gathered by the National Association of Pension Funds, which found that only 34 per cent of people are confident that pensions will leave them with enough money for life after they finish working.
Posted by Michael Ewing
