Emma Lunn, Friday July 04, 2008
The cost of retiring comfortably has soared to a massive £413,000, according to new research - yet the majority of people are still failing to seek advice on how to build a pension pot. Take action now - we show you six ways to boost your old age income
The total cost of retirement for a typical UK couple has soared to a massive £413,000, according
to a shock new survey. The figure has climbed because of rising inflation coupled with increasing
life expectancy - someone aged 55 today has a one in four chance of reaching 95.
Life Trust Insurance’s 2008 Cost of Retirement report says an individual living alone will
need £326,700 to retire comfortably and anyone reaching the ripe old age of 100 will need £708,500
to fund their retirement.
What’s more, it seems that many of us are ill-equipped for retirement - another report from
investments giant LV= says that seven million over-50s are confused about retirement, claiming that
complex rules and legislation change from one month to the next.
Yet despite their doubts, the majority of those facing retirement haven't taken professional
financial advice about their overall financial situation, level of savings, and income in
retirement.
Rodney Cook, LV= life and pensions managing director, says: “Around 3.5 million pre-retired
households are yet to take any professional financial advice, which is worrying as so many people
facing retirement admit that they don't understand financial planning rules and legislation.”
Find the best
savings vehicle for your needs
Pensions under threat
The credit crunch has put many final salary pension schemes under threat, with many closing
to new employees. Figures from accountants PricewaterhouseCoopers show that 16% of firms have
closed their defined benefit schemes to existing employees - and a further 11% of companies expect
to do so.
If you’re worried about your retirement income there are a number of ways you can boost what
you will have to live on in old age. We show you six ways to boost your old age income.
