Financially Deprived Old Age?
The results from the 2001 census provide worrying reading. The population of people considered to be “old age” is increasing. Indeed the statistics show that in 2011 there were 430,000 residents over the age of 90. This is compared with 340,000 in 2011 and as few as 13,000 in 1911.
The increase has been more than anticipated and expected further increases puts even more pressure on future retirement rates.
More worrying is that less than half the working population is contributing to any sort of private pension saving.
Later this year workers will start to be enrolled automatically into company pensions rather than being given the option. This may help the distant future but doesn’t have any impact n the current situation.
It appears that the many believe that the state pension will provide for them and don’t realise until too late that they will have a very poor retirement on what they will get.
The Government needs to step in and make the public realise how important an issue this is.
Mr McLean, a former head of the Pensions Advisory Service, said: “While longer average lifespans are good news, we cannot and should not close our eyes to the financial and social problems this will cause in the not too distant future.
“As things stand at the moment less than half the working population is contributing to any sort of private pension saving and millions are sleep walking into a very uncertain and financially deprived old age.”
It is important at this time to get in touch with an expert to discuss your options. An Independent Financial Adviser will be able to calculate likely pensions and advise on how to increase them. It is never too early to start paying into a pension!