Mike Morrison, head of pensions development, AXA Wealth, comments on the latest Pensions Policy Institute report.
The Pensions Policy Institute (PPI) report has found that nearly half of people aged over 50 will have to work and save for 11 years beyond state pension age to maintain their lifestyle. This means that those who are not able to continue working will be at a huge disadvantage.
Mike Morrison says: "For those already aged over 50, for whom retirement is not too far off, the macro picture is currently rather bleak with retirement income being heavily impacted by low annuity rates and rising living costs. In addition, life expectancy is increasing and as a consequence people have to work for longer to fund their later years. Planning for retirement has therefore never been more crucial and people must seek professional advice earlier than they may have done before, especially in today's market.
"However, this is an excellent opportunity for younger people who are starting out in work and beginning to think about how much of their salary they need to save. These figures highlight the importance of long-term financial planning and is a good chance for younger people to take matters into their own hands so that they have more choice as to when they will be able to retire.
"Planning for your retirement should be treated as an on-going process, and not something sought a few months before finishing work. Retirement is meant to be a time of leisure and anything that can be done to increase income shouldn't be underestimated."
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