May 15th, 2009
Research by Key Retirement Solutions has found that 1 in 3 pensioners still have an outstanding mortgage with an average mortgage debt of £43,069 and average monthly mortgage payment of £205. According to the Prudential 2009 retirement survey UK workers planning to draw their pensions in 2009 expect to get an average income of £17,779 a year, some £884 less than those retiring in 2008. Retirement will mean taking a £7,129 cut in income compared with the national average salary of £24,908 but some believe they will be considerably worse off. A Daily Telegraph survey found that almost one in ten adults are having to contribute to their parents’ upkeep. Financial experts and politicians noted that a ‘sandwich generation’ of adults squeezed between their parents and children has become one of the most striking phenomenons of the credit crisis. Fairinvestment has found that, on average, 39% of Brits do not have a pension plan in place and 20% of Brits with a pension have had to reduce their contributions or stop paying into it since the credit crunch began. Latest figures from Alliance Trust Research Centre show inflation rate facing over 75 year olds was 4.6% in March, 59% higher than the official rate of inflation of 2.9%. It was 3.79% for 65-74 year olds. On average someone who requires care in a residential care home may expect to pay in the region of £25,000 per annum. Research from Lincoln Financial Group reveals that 41% of Brits are resigning themselves to the fact that they will have to work either full or part time during their retirement to fund and maintain the lifestyle they want. Lincoln’s research also reveals that 11% people are convinced they will not have enough money to last them to the age of 70, let alone longer. For the first time ever, there are more people of state pensionable age than under-16s. Theses recent statistics compiled by ‘Credit Action’ demonstrate the need for sound financial advice. Please call Mark or Clare at GMP Independent Financial Advisers LLP on 0207 2886400, who would be happy to discuss your financial requirements in more detail.