9 Million People not Saving Eough for Retirement
Many people are not doing enough to ensure a comfortable retirement according to a new report by the Workplace Retirement Income Commission.
The report suggests that up to 9 million people in the UK face a 'bleak old age' because they are not planning sufficiently for their retirement.
Its report described critical problems in the current system, which was "complex, costly and inefficient".
Lord McFall of Alcluith, the former Treasury Select Committee chair who led the WRIC, said:
“Too many people are stuck in a complex, costly and inefficient system that relegates the consumer’s interest to second place. On top of that, they simply aren’t saving enough to secure a decent retirement.
“People need to get more bang for their buck, or they’re not going to bother with a pension. Instead they’ll end up spending today, ignoring tomorrow, and scraping by in poverty on the state pension. We cannot stand by and let that happen. The complacency of many in the pensions industry is alarming.”
Changes, being introduced in 2012, will see workers automatically enrolled into a pension scheme, unless they earn a very low wage or opt out themselves.
Pensions income gap
A report in 2010 suggested that many people will experience a pensions income gap of up to £7,500 a year. In the UK, the average desired retirement income is £18,793, but, in some parts of the country, people may fall more than a third short of that, according to new research from Hymans Robertson.
Despite this stark reality, many are still failing to plan for their retirement. In February 2010, the Guardian reported that 2/5 of over 55's are not doing anything for their retirement.