Retirement savings'may be at risk'

The increasing life expectancy of Britons may be putting the value of retirement savings at risk, one sector commentator has claimed.

Owen Walker, assistant editor of Pensions Management magazine, said people wanted to save enough to be able to afford the retirement years they wanted.

He explained a big part of this funding came from property, which many older people still believed would provide their best source of income once they left employment and would also leave them with enough money to pass on to their dependents once they had passed away.

Retirement savings 'may be at risk'

However, Mr Walker warned that this nest egg may not be enough due to Britons now living for longer and with additional medical costs on the rise.

"Unfortunately, this will probably not spur people to save more into pensions, as research has shown that very few of us expect to end up in retirement homes or to rely on expensive medical care in our old age," he concluded.

Research by has revealed that almost half of Britons (42 per cent) have cancelled insurance or pension contributions in a bid to cut household expenditure and ease financial pressures.

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