'Perfect storm' set to ruin retirement plans

A 'perfect storm' of demographic, individual and financial factors is poised to derail people's retirement plans, a global survey from HSBC Insurance reveals.

The insurer's fifth annual future of retirement study found people's short-term survival strategies in the midst of recession were creating a serious long-term pensions "downturn deficit".

And it also says there was a continuing lack of pensions planning - which is being exacerbated by poor levels of financial understanding, education and access to advice.

It says the consequence of these combined issues is that many people in the UK will struggle to make ends meet when they come to retire, unless they urgently review their priorities and planning.

HSBC group chairman Stephen Green says: "A perfect storm is confronting pensions planning, created by an ageing population, falling pension funds values, a drop in state and employer contributions and an economic downturn which is forcing people to make tough financial choices."

jonathan.stapleton@incisivemedia.com