A recent study has uncovered that many Britons are at risk of having to work longer to fund their retirement due to inflation. Experts are now warning that the because of the cost-of-living crisis, the UK’s retirement poverty gap will continue to grow, with an increasing number of retirees solely reliant on their state pension.
Experts in retirement planning in Shropshire, Hampshire and other affluent parts of Britain help their clients to ensure they will have adequate income when they stop working. Along with savings strategies, financial advisors like wealth managers can help them invest for the future while ensuring they have the provisions that they need to enjoy their retirement.
The research revealed that one out of five respondents who planned to retire this year would use their state pension as their primary source of income. Unfortunately, the state pension’s yearly increase is presently running below the rate of inflation. As a result, in real terms, its value is decreasing at a time when many recipients are struggling with Britain’s cost-of-living crisis.
Effectively, a person retiring on the new £185.15-a-week state pension will find the purchasing power of their money reduced. The reality is that this amount may not be sufficient for many people and could be push them into poverty without other plans in place.
The survey also found many people unprepared, with 66 per cent of the newly retired confirming that they were working in some form during retirement to cover their costs.
