UK confronts own retirement income shortfall
Australians are not the only ones facing a retirement incomes shortfall, with a new report issued in the United Kingdom suggesting that country faces a nine trillion pound shortfall.
The report, developed by the Chartered Insurance Institute warns that many pre-retirees have little savings and carry the burden of significant debts just at a time when their incomes are about to fall.
Commenting on the report, a spokesman for the institute said a lot of people were going to have their assets depleted by parents’ long-term care costs, of their own.
The UK Minister for Pensions, Steve Webb was quoted in the UK media as saying the next generation would face a different world, with increasing life expectancy, the decline in final salary schemes and lower annuity rates.
“They are going to have to take greater responsibility for saving for their retirement,” he said.
AUTHOR
Mike Taylor
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