| Oh, dear. There
seem to be rather
a lot of people
in Britain who
are under the
illusion that
they're going
to have a comfortable
retirement.
According
to new research
by the asset management
company, JP Morgan
Fleming, the average
working adult
believes they
will have an annual
retirement income
of almost £19,000
in today's money
- 77% of the national
average salary.
In
fact, only one
in four can expect
to be comparatively
comfortable in
retirement with
an income of 50%
or more of their
final salary.
If
that doesn't shock
you then, maybe,
the following
will.
The
research found
that 40% of working
adults in the
UK are not at
all concerned
about the level
of income they
will have to live
on when they retire
- in spite of
the fact that
43% of people
are not currently
making contributions
into pension schemes.
As
Simon Crinage
of JP Morgan Fleming
points out: "Until
we see a reverse
in Britain's debt
burden, which
has been fuelled
by the housing
boom and unsecured
borrowing, and
a concerted effort
to educate consumers
about the importance
of long-term saving
from an early
age, the situation
is only going
to get worse."
It's
interesting to
note that the
company's Pension
Map Of Great Britain
2003 paints a
very different
picture to the
one they produced
in 1997. For example
- in 1997 - in
the South East,
61% of workers
were saving enough
for a comfortable
retirement. Now
only 26% are bothering
to do so.
Falling
equity markets,
declining annuity
rates and the
closure of final
salary pension
schemes may have
put people off
pensions. It's
understandable,
but, if you are
amongst the 'Disillusioned',
you still need
to make some sort
of provision for
your retirement.
How
you choose to
do so is up to
you. But it would
be a shame if
you had to struggle
for 20 or 30 years
on the meagre
state pension
after you've stopped
working. That's
if the state pension
still exists by
the time you retire,
of course.
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