Less Than 50% of People Are Saving Enough for Retirement
According to a new survey by Scottish Widows, only 48% of people are saving enough for their retirement. With such a shortfall in pension savings, alternative sources of income like equity release schemes might be needed.
This percentage of savers has dropped by 6% compared to last year and it takes it to its lowest level since 2006. One of the key contributors to this lack of savings is the economic downturn, according to 41% of people asked.
Equity Release Can Make Up For the Pension Shortfall
With many over-55’s facing up to the possibility of not having enough income in retirement, homeowners might consider an equity release scheme. Equity release schemes have the potential to unlock a tax free lump sum from the value of a home. The cash generated from this can be put towards anything, with many homeowners investing in their retirement so that they can enjoy it to the full.
Ian Naismith, head of pensions market development at Scottish Widows, said: “The whole nation is feeling worse off than a year ago and this is really starting to take its toll on pensions savings.
“While there are signs that the economy is recovering, the nation’s saving habits paint a very different story.”
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