With current mortgage rates, fuel costs and energy bills crippling British families, it’s perhaps not surprising that fewer people can afford to start investing early in preparation for their retirement.
But putting off saving for old age can substantially affect the kind of lifestyle you will lead in retirement and leave a gaping hole between your current earnings and that of your pension income, especially if you are intending to rely on the State Pension alone.
Saving just a little now can alleviate the hardships of a poor retirement income and enable you to continue leading a fun-filled life way into old age.
research shows one in six people planning to retire this year will depend on the State Pension alone to fund their retirement.
The figures, released by Prudential as part of its Class of 2012 research, also reveal women are more than twice as likely as men to have no pension, with 20% of women depending entirely on the State Pension this year compared to just 8% of men.
Meanwhile, the average person planning to retire this year will look to the State for 34% of their income and a further 26% have overestimated by more than £500 a year what the State Pension pays.
Vince Smith-Hughes, retirement income expert at Prudential, said: “While the State Pension is a safety net for pensioners in the UK, it should only ever be regarded as part of an overall retirement plan.
“For far too many people, the State Pension has become the default income option in retirement. Even those who have some private provision depend so heavily on the State that it makes up a third of their retirement income.”
Commenting on the research, Chris Jones, Principal Advisor with overseas property investment firm Positive Plus, said: “There are a host of ways retirees can help boost their income to ensure they maintain the standard of living they have becoming accustomed to during their working lives”.
He continues: “While it is always advisable to start saving early and anticipate the future, it’s never too late to look at the alternatives and make positive changes to your pension arrangements and it’s worth seeking the advice of a professional foe guidance.
“Overseas property investment is becoming a popular choice for pensioners looking to bring better returns on their pensions and savings.
Many people have funded an overseas investment property via an equity release scheme giving them access to the money tied up in their property to invest elsewhere and provide a real financial boost when needed.”
Property Aspects Magazine appreciate the contribution from Chris Jones at Positive-Plus towards this article.