Pensions - Articles - Cost of living on pensions causes retirement planning misery


New research by the Pensions Management Institute (PMI) shows that almost half (49%) of working adults have changed their retirement plans because of the Cost-of-Living Crisis. This includes 24% of people who are set to delay their retirement and 23% who have reduced their pension contributions. One in twenty people (5%) admitted to stopping their pension contributions entirely.

 PMI Council Member, Tim Box explained: “Our research shows the concerns that many people have about how well they can prepare for retirement. With only 30% of our respondents believing that the State Pension will be more than half of their retirement income, the role of private pension provision to fill the gap is critically important. If the State Pension Age is to be raised to 71, as has recently been speculated about, then private pension savings are likely to be the only source of income between stopping work and the commencement of the State Pension for a huge swathe of those born after 1970.”

 Two-thirds of those surveyed felt that they did not have the knowledge required to choose their pension provider despite nearly 60% showing some interest in being able to choose their own provider. This is relevant to the government’s recent lifetime provider (“pot for life”) proposals and shows the vital importance of improving financial and pension education throughout society before implementing such a radical change.

 Savers also value retirement benefits in the form of an income stream rather than a cash sum. 58% planned to take retirement benefits totally or mainly as an income with just 25% interested in taking their pension savings totally or mainly as cash. 81% of respondents valued a retirement income that would be guaranteed for life, with two-thirds attracted to an income that kept pace with price inflation.

 Tim Box added: “These additional statistics show that it is vital that the Government ensures that savers are given appropriate support and education to save for retirement in an era when it is likely that State pension benefits will only become available in an individual’s eighth decade.”
  

Back to Index


Similar News to this Story

94 percent view State Pension as an entitlement not benefit
Majority of adults aged 66+ say that Triple Lock is affordable and fair to older generations. Around one in seven rely on the State Pension to provide
Fair play off the pitch
Male players in the English Premier League earn an average of more than £3 million per year, while their female counterparts average around £47,000. T
Why Bitcoin matters to Pension Schemes
Back in November 2024, Cartwright Pension Trusts announced its role in facilitating the first-ever UK DB pension trust investment in Bitcoin. With the

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.