Saving for a pension is something that many people in their 50′s may have which they’ve have done more of given the bleak financial and economic outlook. This point was underlined with the news that more than two thirds of those over 50 have a pension fund under £30,000. Philip Brown from annuity specialists Partnership is quoted as saying that… “….well over two-thirds of all those in the post-50 age group have less than £30,000 in an annuity – which, at today’s rates, means an annual income of just £2,000 a year, or £40 per week.”
He went on to argue that this would mean in the future people would become more reliant on the state. For an average earner, earning £26,000 per year, this would mean a state pension of £6,000 and a private pension of around £2,000. This means that people will face a reduction from working to retirement income of around 70%. This could result in some people having to drastically change their lifestyle. However, many people will avoid this drop in income by taking up part time work.
