Lifestyle expectations put pensions in jeopardy

Working adults in the UK have ‘higher expectations’ of life than previous generations, causing a decline in saving for pensions.

This is the view of Padraig Floyd, editor of Pensions Management magazine.

According to Floyd, many consumers now take for granted having ‘a house, two holidays’ and being ‘able to go out for meals regularly’ despite not earning enough to maintain this lifestyle.

Because of this, an increasing number of individuals are failing to adequately prepare for retirement.

Floyd said: “People’s expectations are much higher now than they have been in the past and they just don’t have enough to live on.

“There are very few people today who will be saving enough for retirement.”

If people want to live up to these high expectations and live comfortably during retirement, then they must be prepared to work for longer, Floyd said.

Debt management could also become a problem for many of these consumers, he added.

In related news, recent research by Lincoln Financial Group found that 41% of Brits will run out of retirement income before their 85th birthday.

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