Pensions and demographic risks
Different demographics of the population experience different pension risks, depending on age, location and various other factors.
Read also Pensions in Germany: How the new government plans to solve an age-old issue
Also, the fact that the UK population is getting older and living for longer could be viewed as a demographic risk in itself.
Read also UK. Double tax whammy risk for big pension withdrawals
As Jon Young, financial planner at WealthFlow, says: “Your pension pot has to last for longer and probably has to pay for a more active lifestyle in retirement than it did previously.”
Read also Do ‘ethical’ pension funds have a private equity problem?
However, people might not be sufficiently aware of this, as Ryan Medlock, senior investment development and technical manager at Royal London, explains: “We know that on average, the majority of people tend to underestimate their life expectancy by five to 10 years. This, for example, could mean that some individuals don’t think their retirement income needs to last them as long as it actually does.”
Read more @FT ADVISER
249 views
