Prospective retirees are sourcing their income in different ways to previous generations, a new report asserts.

New research from Saga indicates that 18 per cent of retirees in their 80s have been unable to afford "most things" during their retirement, compared to 30 per cent of retirees aged between 50 and 59.

Noting a decline in company pension schemes, the organisation reports a divide between the 29 per cent of people who think they will be able to afford everything from their company pension and 43 per cent who are less positive about its scope.

Some 25 per cent of people intending to retire in the next five years are planning to take out a personal pension, with men more likely to pursue this route than women.

Andrew Goodsell, chief executive of Saga Group, remarks: "The experiences of people already enjoying life without work should act as an example to those who want to ensure an active and affluent retirement."

Newcastle Building Society has recommended property as a possible source of retirement income, while moneysupermarket.com predicts that secured loans will grow in popularity this year.
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