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Retirement planning should be more 'proactive'

23 January 2008 / by None
Consumers should plan more carefully for their retirement, according to statistics from Barings Asset Management.

New research has shown that 24 per cent of adults still to retire have made no retirement plans whatsoever.

Despite recommendations by the government that the retirement age be increased over the coming years, many young people surveyed still assume they will be able to retire at 61.

However, 46 per cent of those planning to retire before the age of 50 do not have pension scheme in place, with 17 per cent expecting to retire on a defined benefit (DB) final salary-related scheme.

Barings' head of European sales, Rob Lay, warns: "People have to start taking a more proactive approach to planning for their retirement. Relying on a DB scheme is no longer an option for many UK adults and relying on your property as a pension is a very risky strategy to take."

He added that the figures are a "worrying" sign that many in the UK think they will be able to comfortably retire without having made the necessary preparations.

In related news, oil company BP has announced that it is freezing contributions into its pension fund following a similar step taken by rival company Royal Dutch Shell in October last year, the Independent reports.

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