Are you at risk of outliving your pension?

A new study has revealed that 28 per cent of pensioners face choices that could see them quickly outlive their existing pension pot.

The Pensions Policy Institute’s (PPI) Evolving Retirement Outcomes report shows that many savers currently approaching retirement could experience their retirement income vary by up to 70 per cent, as a result of high levels of defined contribution savings, but little or no defined benefit pension

This degree to which their income will vary in retirement compared to what they had initially hoped to enjoy will be based entirely on decisions they have made, and continue to make, about their private pension schemes.

The study found that an important element in retirement planning by individuals was length of life after leaving work, but consumer uncertainty about how long they expect to live in retirement poses a significant challenge to retirees. Other studies have indicated that individuals underestimate the length of time they are going to spend in retirement by a decade or more.

According to the research, products such as annuities which provide a secure income in retirement could help to prevent pension pots being exhausted, but it advised that savers sought professional advice and guidance when planning retirement to help them secure better outcomes in later life. Other studies suggest that a flexible income in retirement is more beneficial. This can be accessed by a ‘drawdown’ style contract, these are complicated and also require advice.

Policy researcher for PPI Lauren Wilkinson said: “If people are engaged and informed, they are able to achieve positive outcomes using the range of products already available to them.”

MT Financial Management is a firm of Chartered Financial Planners that provides independent and unbiased financial planning, investment portfolio management, pension review and trust review services to the clients of Moore Thompson Chartered Accountants and selected professional introducers.

We offer an initial meeting at our cost and with no obligation so that you can decide whether you wish to use our services before incurring any costs.

We will agree a fixed fee to provide a review of your ‘ current financial situation so that our experienced and independent financial advisors can determine whether your financial arrangements are appropriate, and recommend areas that need improvement. Of course, our proposals will be comprehensively explained, so that you can make informed decisions about any suggested changes.

All of our advisors are qualified to Chartered Financial Planner status, providing their high levels of technical knowledge and experience on a fixed cost basis.

As our fees are agreed in advance, we are not tied to promoting particular solutions and can focus on providing the best professional advice.

To find out more about our services, please contact Trevor Wilshire on 01775 717220 or visit

Posted in ARA News.