Insufficient annuity income
Yet another bit of news about retirees getting insufficient income from their annuity and their State pension. Fine, getting the best annuity rate for your money helps, but…
Around one in five people who are within 10 years of retiring have not built up a nest egg for their later years, according to research by MGM Advantage, a mutual society that focuses on retirement services. The report, Retirement Nation: Britain’s hopes and dreams for retirement, surveyed 3,000 people. They were split into those who were already retired, people who were within 10 years of retirement and those who were more than 10 years from retirement.
Welsh people were least likely to have pension savings, while more than half of the people surveyed in Sheffield, Brighton, Cardiff and Plymouth had made no provisions for retirement.
Women were found to have made less provisions than their male counterparts, with one third of men saying that they started saving for retirement in their early 20s compared with just one in five women.
At the other end of the scale, 30% of people in Newcastle, 28% of Southampton respondents and 27% of those surveyed in Nottingham said that they were very prepared for their retirement.
But the most ‘financially savvy’ people were found in Liverpool, where 11% of those surveyed said they frequently visit IFAs compared with a national average of just 8%.
‘People are retiring on incomes that are lower than they should be and there’s an opportunity to put that right,’ said Chris Evans (pictured), chief executive of MGM Advantage, which is rolling out a suite of products in the retirement income space in the coming months.
He added: ‘We now know for certain that there’s a direct link between financial security in retirement and seeking financial advice, even if you don’t have a substantial nest egg.’
