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PLANNING FOR RETIREMENT

Overview

Most people convert their pension funds into income by purchasing an annuity. Annuity rates have fallen in recent years and are expected to get even lower in the medium term. This means that we either lower our expectations as far as retirement income is concerned, or we save more and increase our pension funds.

However complex pensions schemes are, however annuity rates move and whatever the Government plans to do, we as individuals must be proactive as far as our pension arrangements are concerned.

The J P Morgan Fleming Pension Map of Britain 2003 showed that only 1 in 4 working adults can expect to be comfortable in retirement with an income of 50% or more of their final salary. This figure represents 3.4 million fewer people than in 1996.

REMEMBER You should not use any information contained on this page as the basis of any action until you have discussed matters with your financial adviser.