Forced To Work Longer As Pension Savings Fall
10 June 2013
Less than half of Britons are saving enough into a pension fund, while one in five people are not putting aside anything at all.
According to a study by Scottish Widows, just 45% of adults aged over 30 are saving enough for their twilight years, the lowest proportion ever recorded.
Despite this, researchers found that the average retirement income that people would be happy with at age 70 actually increased from £24,500 to £25,200.
With Britain facing a pensions shortfall, experts have warned that many people will be forced to delay their retirement until their seventies.
The report claims that pension savers are being hit by a 'triple whammy' of economic uncertainty, an increase in the age of first-time home buyers and an ageing population.
'These factors combined create a perfect storm for those heading towards retirement,' said Ian Naismith of Scottish Widows. 'Whilst we are becoming more aware of the need to save for retirement, we must do more to ensure that we have a comfortable old age.'
He continued; 'Whilst starting saving as soon as possible is highly desirable, and increasing contributions as retirement approaches is almost essential, the biggest single difference can come from postponing retirement.'