You’re a long time retired: improving incomes in retirement

The chance of a person who retires aged 65 spending 30 years in retirement will have increased from 16 per cent in 2010 to 26 per cent by 2035. As people spend more time in retirement there is a need to maintain pensioner income for longer and to consider the costs of long term care. While there are significant implications for government finances, the changing role of the private pillar is central to the debate. It is not only important to ask whether individuals are saving enough for their futures but whether they are making the most of their assets when they reach retirement. Steve Webb MP, Minister of State for Pensions, commented recently that the process of converting wealth into income at retirement (decumulation) is “a jigsaw we haven’t given enough time to.”