Brits in 1 group given urgent pension alert – affects 50% of people | Personal Finance | Finance
One group of Brits has been warned that they face a retirement crisis. Half of those who live with physical or mental health problems are at risk of pension poverty, having an income below the minimum threshold required to achieve the retirement lifestyle standards outlined by the Pensions UK Retirement Living Standards, according to a new report. This is almost twice the 27% rate for the wider population.
The research by Scottish Widows suggests that rising levels of long-term illness are forcing people out of the workforce, cutting their earnings and leaving them with considerably smaller pension pots. Analysis suggests that 29% said their physical or mental health has affected their capacity to work over the past five years. It also found that 10% said they had ceased working entirely due to health issues, while 7% had cut their hours and 6% had moved into less demanding or lower-paid roles.
Susan Hope, a pension expert at Scottish Widows, said: “Navigating health challenges is something which many of us will have to face in our later years.
“Whether it’s managing a chronic condition, mental burnout, or working through menopause, physical and emotional struggles often force people to change their working patterns, cut back their hours or drop out of the workforce altogether.
“This just doesn’t affect our day-to-day lives, it often knocks our long-term financial plans off track too.”
She added that workers could strengthen their retirement prospects by taking straightforward steps such as checking pension balances, reviewing retirement goals and considering whether employers would match additional pension contributions, WalesOnline reported.
It comes as research by the Pensions and Lifetime Savings Association revealed that a single pensioner now requires approximately £13,400 a year to achieve a minimum standard of living in retirement.
This figure increases to £31,700 for a moderate lifestyle and £43,900 for a comfortable one.
