Home 'may not provide enough' retirement income
29 October 2008
People who rely on their property to provide retirement income could be in for a sharp shock, according to a pensions expert.
Owen Walker, assistant editor of Pensions Management magazine, said that people do not tend to save "nearly enough" for the kind of retirement they want and pointed out that many still think that their home will provide the best source of retirement money.
However, he suggested that the home may not be enough as increased care home fees coupled with the associated medical costs of longer life expectancy would eat into funds.
According to figures from uSwitch, around 42 per cent of Brits have stopped contributing to insurance or pensions as they try and tighten their financial belts.
Of these, 86 per cent had saved themselves around £50 in monthly expenditure with one in ten saying cutting out these costs had saved them up to £100.
Retirement in the UK costs an average household £413,000, according to a Life Trust Insurance report.
