Economists at the World Economic Forum (WEF) have issued a warning to British pension holders that they could run out of money a decade before they die.
The latest report from the WEF suggests that many people will have to work for at least 10 more years to increase the amount they save and live comfortably in retirement.
It predicts that retirees would need enough income to cover 70 per cent of their pre-retirement pay, but found that most retirees or those approaching retirement do not have enough in their pots.
Han Yik, co-author of the report, is calling on the Government, businesses and savers to take action, with the Government, in particular, needing to do more to help savers allocate their pensions and investments more efficiently.
The WEF believes that if something is not done to rectify the pension gap, many people may need to postpone their retirement and continue working.
The report also called on employers to do more to make sure workers are covered by workplace pension schemes.
It is thought that the UK is ahead of many countries in this area thanks to the workplace pension scheme, but the relatively small minimum contribution of eight per cent may not be enough to sustain people who are living longer.
Steve Horton, Partner at Milsted Langdon Financial Services, said: “If you are concerned that your pension pot may not be sufficient to provide for a comfortable retirement it is worth exploring all available options sooner rather than later.”
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