2nd Jan '09 - A Paltry Pension Pot?
Posted on Friday, January 02nd, 2009 at 1:14pm
Putting money aside for a life insurance policy may be a difficult task for many Britons.Indeed, the monthly state pension for a single person - £439 - falls short of the £832 that people feel that they will need during their retirement.
According to a survey for Friends Provident , 57 per cent of individuals are expecting to live solely or partly off their state pension.
But with little spare cash, people may make some household cuts and life insurance could be one of the first to go.
"Even though it [the state pension] is a universal benefit, paid at an earlier age and worth more in real terms than in 1909, many people feel it is an inadequate benefit, insufficient for their needs," suggests head of corporate pensions marketing at Friends Provident Martin Palmer.
However, decreasing term life insurance - which could protect mortgage payments on a home - may be one of the more affordable types of cover on the market.
Meanwhile, over 80 per cent of people who stayed in for the recent New Year's Eve celebrations did so because they thought their money could be better spent elsewhere, NS&I discovered.
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