HOW LONG WILL MY PENSION INCOME LAST ?

How long will my pension income last ? A question many are asking.

According to new research, nearly half of those approaching retirement (aged 55-64) don’t know how long their pension income will last. With pension providers reporting demand for flexible withdrawals, there is a danger that pension funds could run dry if people don’t plan carefully.

The survey of 1,000 people found that the average pension pot was £87,500. The average amount people expect to take from their pension in income annually is around £9,000.

Even with a growth rate of 5%p.a. applied to the pension savings, the average pension pot of people with access to the new pension freedoms could potentially last just 10 years.

Worryingly, 22% of people said they have no alternative sources of income and admit that they will rely solely on the State Pension. 36% say they will continue to work, even if only part-time to supplement their pension income, and the remainder have other sources of income such as property or other investments to fall back on.

The new pension freedoms could be ideal for those who want more control over their money, however responsibility is now firmly with the individual to ensure they have enough money to last their lifetime.

*All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 1,023 adults. Fieldwork was undertaken 11-17 March 2015 online.

A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation

Clarke Nicklin financial planning is a trading name of CNFP LLP, a Ltd Liability Partnership registered in England and Wales No.OC324909. CNFP LLP is an appointed representative of Lighthouse Advisory Services Ltd which is authorised and regulated by the Financial Conduct Authority.

0161 495 4700 pensions@cnfp.co.uk  www.cnfp.co.uk