Retirement

A significant portion of U.K. workers over the age of 55 are modifying their retirement plans in light of the recession and financial crisis. A study by U.K. retirement specialist MGM Advantage found that 1.85 million near-retirees are planning to work longer than expected in hope of repairing their pensions and personal finances. The study also revealed: 35% of near-retirees have done nothing at all to prepare for retirement. 9.3% of workers over age 55 have considered tapping into equity in...

Rockingham Retirement, a British retirement income specialist, suggests that inflation could wipe out the spending power of UK pensioners who are receiving fixed income from standard annuities. The Financial Times Adviser article indicates that a 5 percent rate of inflation could erode 40% of the value of an 80,000 pound pension fund within 10 years. In 1975, following the early 70s recession, inflation shot up from 6.3 per cent at the start of the decade to 24.2 per cent. Five years later, in...