A new research paper which highlights the rising risk of financial deprivation in later life underlines how important it is for individuals to prioritise pension planning.
The Pensions Policy Institute (PPI) reckons that fewer than one in 10 people can expect to achieve a comfortable standard of living, while nearly half of people will fail to meet a “personally acceptable” level of income in retirement. These are stark figures which underline the urgency of developing solutions for future generations. In its What is an adequate retirement income? paper, the PPI says that solutions include employers and employees making higher pension contributions, more years spent working or the state increasing the underpin of a higher state pension.
Securing a decent pension income while balancing day-to-day needs with future ones is particularly pertinent for younger people struggling to get onto the property ladder while forking out for rent and repaying student loans. It’s a big issue for women too because they are far more likely to suffer from pension poverty than men.