Future retirees 'will rely on' savings, not pensions

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Future retirees 'will rely on' savings, not pensions

Wed 4th Jun 2008

Many future retirees are likely to use their savings rather than a pension to live off, one expert has claimed.

According to the director of Churchouse Financial Planning Limited, Keith Churchouse, workers who have accumulated some savings during their employment are more likely to be reliant on them when they retire than others before them.

"There is reluctance among many people to pay into pensions and there has been for a number of years," he said.

Mr Churchouse claimed that there will be many people who choose to opt out of pension schemes and in doing so they will "be reliant on the state when they get to retirement".

In years to come many retirees will in general not rely on pensions, he added.

Figures from the Fidelity Retirement Index show that the average person is likely to have an income when they retire that is 42 per cent of what they earned when working.

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