Retirees to rely more on savings
Retirees are to rely more on savings in the future as pension schemes start to offer smaller payouts, according to one expert.Keith Churchouse, director of Churchouse Financial Planning Limited, believes there will still be a significant number of people who opt out of making payments through the personal accounts system, due to be introduced in 2012.Mr Churchouse says it is hard to foresee whether those who "opt out of the scheme" will be able to receive money from the state in their old age.He commented: "There is reluctance among many people to pay into pensions, and there has been for a number of years. "With personal accounts, you can still opt out of them, and I am sure there will be people who will still opt out of them."Based on the national average salary of £22,900, the Fidelity Retirement Index estimates that he or she will have an annual retirement income of £9,618.
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