As pensions dwindle, ‘people to rely on savings’

With the amount being paid out by pension funds expected to drop the number of people having to dip in to their savings each month is likely to rise, the director of Churchouse Financial Planning has warned.

Keith Churchouse said that people who have taken the opportunity to build up savings are likely to “be reliant” on them once they retire.

“I do think that people are very unlikely to be reliant on pensions in retirement,” Mr Churchouse commented.

According to the Fidelity Retirement Index, a worker who retires now on the average UK income can expect less than £30 a day from their pension payout.

The organisation says that someone currently earning the national average salary of £22,900 who is about to retire will have an annual income of £9,618 from their pension, which is about £185 a week.

Mr Churchouse said he does not think “there’s any doubt” people will rely more on their savings in old age.

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