The World Economic Forum has found that many pensioners will not have enough in their savings to see them through the last years of their life. According to the economist, most Britons will run out of money more than 10 years before they die. This is because the value of pensions is not rising in line with life expectancy.
To counteract this Britons may need to keep working 10 years longer than they initially anticipated to avoid running out of money before they die. The report states pensioners need enough income to cover 70 per cent of their pre-retirement pay before they factor in any kind of pensions.
Co-author of the report Han Yik said of the findings: “You either spend less or you make more.
“All the risks that government and employers used to have, we’ve shifted that onto the workers.”
He urged governments to make more provisions for pensioners.
If this is not done, he warned, people are likely to have to postpone retirement.
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Source: The Express