UK pensioners to run out of money more than 10 years before they die

havenifa

havenifa


Posted on: 17th June 2019

Warnings are being made regarding pensions, stating that pensioners may find themselves in dire situations towards the end of their lives. Experts from the World Economic Forum have claimed that pensioners risk running out of money more than 10 years before they die. This is due to the fact that the value of pensions simply isn’t rising in line with life expectancy. This is leading to pensioners not having enough in their savings to see them through the last years of their life.

Fighting the problem

In order to counteract this problem, Britons may need to continue to work for a further 10 years than they initially expected if they wish to prevent running out of money before they die. According to the report, pensioners must earn enough income to cover 70 per cent of their pre-retirement pay before they can factor in any type of pension.

A call for help

Co-author of the report Han Yik said of the findings, “You either spend less or you make more. All the risks that government and employers used to have, we’ve shifted that onto the workers.”

He urged governments to help pensioners with more provisions. If this is not done, he warned, people are far more likely to put off retirement until a later date in life.

The state pension is a large benefit that older people continue to live comfortably in later life. Recently, it was revealed that far fewer people are claiming state pension credit despite the number of those who are eligible.

The importance of Pension Credit

Pension Credit is a key element of the UK welfare system. It is something that can guarantee people a salary when they reach the age of retirement. It is a supplement to the UK pension and adds a little more to the overall sum that people receive when it is their time to retire.

In addition to the current struggles with retirement funding, the BBC has recently announced that they would terminate their free TV license rule for pensioners unless you receive state pension credit. The Department for Work and Pension (DWP) has said that there is a 60 per cent uptake in Pension Credit. It continued to reveal how more than a million people who are entitled to this benefit are still yet to claim it.

Protect your financial future with Haven IFA

With such daunting information making its way to headlines, it can make the idea of retirement somewhat worrying. Luckily, having an independent financial adviser can help keep your finances on track. At Haven IFA, we aim to provide all our clients with the best guidance for their financial future to ensure that news like this should not affect them. Get in touch to learn more about our services.