Increasing lifespan leads to savings account troubles

As the life expectancy of the average Briton continues to row, many savers are finding it tougher to plan ahead for retirement by putting money aside for the future in savings accounts such as ISAs, says one expert.

Law firm Pinsent Masons partner Robin Ellison stated that none of us truly appreciates for how long they will live.  As a consequence many are neglecting to properly think about the financial issues that accompany retirement and having enough money saved up to live out your twilight years.

Mr Ellison stated that the majority of Brits are labouring under the impression that they’ll live about as long as their parents did.  However the truth is that many will end up living up to an entire decade longer, explained the law firm partner.

Mr Ellison also stated that it is challenging to plan financial resources to last that long, but people will have to do so if they wish to make sure they will be able to live comfortably during their retirement.

In related news, 47 per cent of those over the age of 45 are not putting any money aside for their retirement according to a new study.

Savvy Woman website editor Sarah Pennells commented on the findings, stating that too many Brits will remain reliant on the income they will receive from a state pension instead of saving their own cash and planning ahead.

The state pension is the main source of income for around one third of those who retire, Ms Pennells explained.  She also stated that this trend is mostly due to the fact that many who cannot work – such as full-time mothers – simply can’t afford to put money away for the future.

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