The pension crisis: Life expectancy rises, savings fall short

The UK is heading for a ‘perfect retirement storm’ as life expectancy increases, and financial planning falls short.

According to research from Standard Life, one in five 45-65 year olds who have financial plans in place are no longer confident that their plans will support them due to the current economic climate.

Meanwhile six per cent of that age group do not think they will ever be able to retire.

The news comes as the latest life expectancy figures from the Office for National Statistics (ONS) show that a male at birth in 2008-10 can expect to live until the age of 78.2, while a female can expect to live until 82.3.

Other statistics from the ONS show that active membership of occupational pension schemes, where members are building contributions is at the lowest level since the 1950s.

Commenting on the situation, John Lawson, Head of Pensions Policy at Standard Life said: “The current financial crisis has brought into sharp focus the need to make and review appropriate plans. This will clearly be challenging but there are many things you can do to make your retirement years as secure as possible.”