Pensions 'may meet standard of living desires'

By Tom Farley, Thu 11 Feb 2010 - Published in Pensions

People may not be able to maintain their standard of living in retirement if they rely on pension income alone, it has been suggested.

A report from the Pensions Policy Institute examined the income and assets that the average person retiring in 2030 will have and claimed there will be a shortfall for some.

Chris Curry, the organisation's research director, said that people who are paying into a defined-contribution pot at the standard ten per cent of salary rate are unlikely to have enough money to fund their retirement just using their state and private pensions.

"Many people will need to contribute more to their pension during working life, work longer, or run down savings, investments or housing wealth to achieve a standard of living in retirement they might consider acceptable," he explained.

However, Mr Curry added that reforms to the state pension system could mean people who rely solely on this could have enough money to maintain their standard of living, assuming it is re-indexed to earnings.

This week, Moneyfacts research found that the value of the average personal pension pot has fallen by 60 per cent in the last ten years.

News Categories

News Archive

News: Pensions 'may meet standard of living desires'