More research, this making unfortunate reading. It comes from Lincoln Financial Group, and it states that over a third of Britons are resigning themselves to the fact that they will have to continue to work, either full time or part time, during their retirement to fund and maintain the lifestyle they want in retirement.
Working longer is now considered the main solution to avoiding a retirement spent in poverty, especially as over 40% of people in the UK are doubtful whether they will have enough money in retirement to give them the lifestyle they desire. From those aged 55 and over, around 10% already plan on having to work full time during retirement. Almost 47% say they will work part-time to maintain their lifestyles in retirement.
The research also reveals that around 11% of people are convinced they will not have enough money to last them to the ripe old age of 70, let alone longer. As a result, retirees are hoping that by working longer they can boost their pension fund and be able to afford and enjoy the retirement they have worked so hard for.
Simon O’Connor, of Lincoln Financial Group, stated that retirement should be all about slowing down and having a relaxed enjoyable time. Sadly, with these statistics this seems unlikely for many. What is crucial, however, is the need for effective planning for retirement.
The research from Lincoln revealed that around 17% of people want a pension that is going to give them the maximum possible annuity income throughout their retirement. They could consider variable annuities are one way to ensure an income for life with the potential for overcoming the problems posed by inflation.
These type of products offer an income guarantee and can provide effectively a middle ground between conventional pension annuities and income drawdown, with far greater flexibility than a conventional pension annuity and less risk than a traditional income drawdown plan.
As an example, Lincoln Financial Group offers Lincoln i2Live. It combines the three products under one umbrella, i2Live Accumulator, i2Live Drawdown and i2Live Annuity, and allows customers to move from one product to the next to suit their changing circumstances.
Seek specialist advice to see if this might be a solution for you.
