Pension savings vital for good standard of life
27 August 2008
Saving for a pension is essential for people who want to have a good standard of living after they retire according to an expert.
Michelle Lewis, Senior Policy Adviser at the National Association of Pension Funds (NAPF), said that saving into a company pension scheme was vital, as members get tax relief on their contributions and can also receive employer contribution.
Figures from Lane Clark and Peacock LLP, a consultant and actuaries firm, showed that UK pension schemes in the FTSE 100 had a net deficit of £41 billion in August this year compared with a £12 billion surplus in July of last year.
Out of that sum, £9 billion alone has been added to FTSE 100 deficits between 2006 and 2007 as pension companies are now expecting us to live longer.
The 2008 "Cost of Retirement" report issued by Life Trust Insurance claims that retirement in the UK costs an average household £413,000, with the cost for someone living alone around £326,700.
Recently published figures from the European Commission show that by 2060, almost a quarter of people in the UK will be aged 65 and above, contributing to a total of 30 per cent of the EU population being 65 or over.
