Economist warn of a 10-year shortfall in savers’ pensions

Lamont Pridmore - Accountants

Economists at the World Economic Forum (WEF) have issued a warning to British pension holders that they could run out of money a decade before they die.

The latest report from the WEF suggests that many people will have to work for at least 10 more years to increase the amount they save and live comfortably in retirement.

It predicts that retirees would need enough income to cover 70 per cent of their pre-retirement pay, but found that most retirees or those approaching retirement do not have enough in their pots.

Han Yik, co-author of the report, is calling on the Government, businesses and savers to take action, with the Government, in particular, needing to do more to help savers allocate their pensions and investments more efficiently.

The WEF believes that if something is not done to rectify the pension gap, many people may need to postpone their retirement and continue working.

It is thought that the UK is ahead of many countries in this area thanks to the workplace pension scheme which has helped to improve the pension benefits of employees.

To ensure you can retire at the time you would like to please contact us so we can assess whether you are saving enough, and work with you to maximise the value of your Life Wealth Plan.