IFAs warn of impending pensions crisis

Four in five independent financial advisers (IFAs) believe people are not saving enough towards their retirement, a new poll has discovered.

Research by AXA Winterthur found 79% of IFAs believe people are not saving enough for retirement.

Meanwhile, 21% said their clients do not fully understand the risks and possible rewards of investment.

Responding to the research, AXA called for a “savings culture” to be developed in the UK.

“I don’t think a lot of people realise just how long their retirement can last,” said Mike Morrison, head of pensions development at AXA Winterthur.

AXA pointed out that rising life expectancy means many people will spend 20-30 years in retirement; adding that a pension fund of £100,000 equates to just £5,000 per year over a 20 year period.

“We are all living longer, and most of us would like to at least maintain our current lifestyle,” Morrison said.

“The only way to do that is to start saving and keep saving.”

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