Life expectancy 'poses pension problems'
The increasing life expectancy of UK citizens is a major challenge for the pension industry in the future, it has been claimed.Life insurance and pensions organisation, AEGON Group, has warned that the UK pension pot is already facing significant pressure because of the increasing longevity of Britons and this situation is only going to get worse in the future.Rachel Vahey, head of pensions development at AEGON, explained: "If you go back to 1911, at that point there were only 100 people in the UK who were aged 100 years or over. In 2006, that figure was 9,000, and its expected to increase to 40,000 people by 2031."She added: "That's a lot of pressure to put on the state pension."Research conducted by Tickbox in July of last year on a sample base of 1,268 UK adults revealed 20 per cent of people have no pension and 46 per cent said that, when it comes to money, they live for today.However, AEGON is warning the public that such an attitude could leave them in financial ruin in the future, because the state pension alone will be unlikely to be able to support their retirement.
Share this..
Related stories
HSBC slammed over holiday ad
HSBC has been criticised by an advertising watchdog, over misleading claims that customers would not be charged for making cash withdrawals overseas in one of its advertsThe Advertising Standards Agency (ASA) has ruled that the advert in question - which shows shots of foreign currency, with the tagline "Whoever's on your banknotes with bank account plus you can withdraw them worldwide and we won'...
Read MoreBuyers vs. Sellers – the House Price War
There is set to be something of a standoff over the coming months, as buyers and sellers of houses within the UK lock horns over prices. There is a difference of opinion as to the price of housing from either side, with both seeking to gain as much as possible in the tough economy. This is not good news for the UK housing market, and is likely to further stall sales of houses in the future, ac...
Read MoreLord Mandelson disappointed with Kraft Foods meeting
Just hours after Kraft Foods officially took control of UK giant Cadbury Lord Mandelson was having a personal meeting with Kraft Foods chief executive Irene Rosenfeld. The meeting was purely and simply an opportunity for the UK government to glean commitment from the new US parent company regarding UK jobs and the future stability of the UK operations. However, it looks as though the meeting with...
Read MoreSir Alan Budd looks to rescue the OBR
Sir Alan Budd, the outgoing interim chairman of the Office for Budget Responsibility (OBR), will this week announce a number of changes to the set-up of the watchdog as a last ditch attempt to rescue its reputation begins. Some of the issues which will be proposed are the removal of the OBR from the Treasury building, a reduction in the number of Treasury workers within the OBR as well as the intr...
Read MoreNationwide reports further house price fall
The Nationwide has revealed that house prices in the UK fell by 1.7 percent in September alone which brings the annual fall to 12.4 percent. This latest monthly fall is the largest on record and signals the start of another serious downward spiral for the industry. Finance is scarce, buyers are even scarcer and sellers are coming out in their droves looking to sell at almost any price!