Financial Planning and the Reality and Requirements of Retirees with Private Pensions

Abstract

Much has been written about older people who lack private pensions and the role of the state in pension provision. However, it is also important to consider those who have contributed to private pensions. Simply contributing to a private pension does not guarantee a financially comfortable retirement. The research underlying this article, which is based on a telephone survey of 200 people ages 60 to 75 in the United Kingdom who have income from private pensions, focuses on planning for retirement and current standards of living. Although some pensioners are currently benefiting from substantial pension incomes and considerable disposable income, others, who may have made only limited private pension contributions, face a rather different prospect. As people live longer, they will have to increasingly provide for their own futures. This emphasizes the need for people to plan actively for retirement from an earlier age.