- Tuesday, 18 August 2009The number of retirees entering into
individual voluntary agreements (IVAs) could rise as a result of a widespread failure to save a large enough pension.
According to research from AXA Winterthur Wealth Management, 79 per cent of independent financial advisors believe that their clients will not have enough money to comfortably live out their retired years.
With many people typically living for 20 to 30 years under a pension plan, a nest-egg of £100,000 would only allow for a yearly payout of £5,000 - at best.
Mike Morrison, head of pensions development at AXA, said: "There is a definite need to encourage a saving culture within the UK.
"I don't think a lot of people realise just how long their retirement can last. We are all living longer, and most of us would like to at least maintain our current lifestyle. The only way to do that is to start saving and keep saving."
The default retirement age is to be reviewed by the government in 2010.
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