Britons face financial ''shock'' in retirement

By MoneyhighStreet Staff. Published on September 5, 2008 This post currently has no comments.

old people
Britons could be in for a "nasty shock" when they reach retirement age, according to a leading independent financial adviser (IFA).

Only a "minority" of people are thought to be saving enough for their retirement, claims Tom McPhail of Hargreaves Lansdown.

The comments follow figures from chartered accountants Grant Thornton, which reveal that UK consumer debt has outstripped gross domestic product.

However, Britons could face the prospect of more loans when they reach stop working, with the number of people paying into a personal pension scheme having fallen by around one million over the past year.

Hargreaves Lansdown estimates that a 65-year-old male saving an average pension would only get a yearly income of £1,380 at today''s rate.

Mr McPhail explained: "A minority of private investors are funding their own pension adequately, very often with the help of their employer.

"For millions of people though, the UK''s retirement provision is beginning to resemble a car crash in slow motion."