Mike Morrison, head of pensions development, AXA Wealth, comments on PricewaterhouseCoopers’ report.
“Yesterday’s report from PricewaterhouseCoopers makes for interesting reading, adding as it does to the chorus of concerned voices on the issue of pensions and retirement. The report found that a baby born today can expect a future where they have to work and save into a pension from as young as 17 without being able to retire until at least 77.
“Let’s get real – are people going to be able to work until they are 77? There are a number of things to consider with a workforce in their 70s: are there sufficient suitable jobs for older people? How will the older generation fair when competing for jobs against a newly qualified youngster who could bring new enthusiasm or skills? What will be the implications of potential ill health?
“People might not be eligible for a pension until much later in life and, as life expectancy increases, it is inevitable that people will have to work for longer to fund their later years, but this does not necessarily take into account those who are unable to work longer. I cannot help but think that working longer may be an easier option for those that possibly do not need to and harder for those that do.
“Early engagement and better planning for retirement has never been more vital. In order to do this people must seek professional advice, sooner than they may have done in previous years, to help them plan the appropriate solution across savings, pensions and investments as well as other asset classes.”
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