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SpanishUK. Retirees at risk of draining pension pots dry
Three-quarters of pensioners could run out of cash with a decade of retirement left.
Older savers risk running out of money and being forced to rely on just the state pension during the last 10 years of their life, according to a study.
Nearly six years on from the introduction of pension freedoms rules that gave savers more independence over how they take their retirement pots, research by pension provider The People’s Pension suggests some people are spending their nest eggs too quickly.
In the small study of 50 savers, including 30 who were also interviewed in 2015 just after pension freedoms were brought in, a huge three-quarters were found to be burning through their cash at a rate that means, at best, they will run out of money in their early-to-mid 80s, even though many will live into their 90s.
If that happens, they would become reliant on other savings and the state pension to pay all of their bills and lifestyle expenses. Currently, the full new state pension is £175.20 per week.
The problem, according to The People’s Pension report, New Choices, Big Decisions, 5 years on, is the 2015 rule change gave people the freedom to take their pension as they wished but not the guidance or skills to plan their spending.
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