More than half the UK adult population have made pension planning a priority, driven by fears that they will outlive their expected pension income, according to new data released today by Prudential*.
Increasing longevity has led 59% of UK adults to conclude that their current pension plan will be inadequate to sustain them in old age. Today, the life expectancy for a 30-year-old man is 86 years, and for a woman 89, leaving many with the challenge of factoring a 20-year retirement into their pension planning.
Prudential reveals that 55% of British adults are now enhancing their pensions planning with second pensions or other savings and investments designed to boost their pension income.
Over a third (36%) stated they either are or intend supplementing their pension plans with additional cash savings, 17% said they are looking to stocks and shares investments, and 15% are seeking to downsize their homes as part of their pension planning.
In addition to general pensions planning, 19% of adults say they also intend to continue working beyond retirement age.
Over a third (36%) of British adults will still be taking a lump sum upon retirement as part of their pension planning, despite the fact that this will reduce their longer term pension income once they give up work. Of those who will take a lump sum in this way, the average amount to be taken will be 17% of their total pensions savings, Prudential said.
“Increasing longevity means workers are having to accept that pensions will be stretched over a longer period, and will therefore deliver a lower income,” said Richard Harrison, Prudential’s Corporate Pensions Director.
“”This is a scary proposition for people considering how to fund their retirement, but there are plenty of options for boosting savings,” he said.
“We believe everyone should see an independent financial adviser to ensure they are saving enough to fund their life in retirement.”
If you would like to calculate your probable pension income now, use our online pension planner, make a pensions enquiry for our ringback service, or speak to one of our friendly independent pensions advisers on 0800 678 5929
*Survey of 2010 UK adults by Research Plus
