Pensioners 'facing up to low-income retirements'

06/03/2009

Britons now have limited expectations of their retirement lifestyle, due to their small pension pots.

Lincoln Financial Group said that 26 per cent of people polled for a recent survey said that they expect to go on one holiday a year.

Grander ambitions were also found to have been sidelined: just one in twenty said that they expect to own a second home when they are retired, while a similar number think they'll be able to afford a cleaner.

Simon O'Connor, head of products and marketing at Lincoln Financial Group, said: "Long gone are the days when people expected to be able to head off into the sunset for the trip of a lifetime once retired.

"These days it's all about the simple luxuries such as learning new hobbies and generally making do with what you can - all on home turf."

Accordingly, less costly ambitions for retirement were found to be commonplace among Britons surveyed for the report.

Around 26 per cent said that they planned to spend more time on an existing hobby when they start drawing their pension.

Kevin Still, EuroDebt director, commented: "We are seeing more and more clients that are over sixty with above average levels of unsecured debts and a high proportion with mortgages outstanding at a time when their income is likely to drop significantly. Some fall in the category of 'asset rich, income poor' and others have inadequate savings to them to meet their previous financial and household commitments."

He added: "With a falling property market, down sizing is often not appropriate and withdrawing savings in long-term investment vehicles likely to worsen the return that they will receive. Just being thrifty is often not enough and many continue to have to work part-time or rely on family to support them in their retirement years. Taking advice is important even if this is with your financial advisor in the first instance."

Tags; Income Worries and Debt, Retirement Money Problems,

Regional Debt Advice; Debt Advice Lincoln,

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