Pensioners forced to borrow money from family

Cash Worries

A lack of adequate financial planning is leaving UK pensioners with considerably less funds than they need to enjoy a comfortable retirement, leaving them with no choice but to turn to families for financial assistance.

According to research conducted by annuity providers MGM Advantage, around 250,000 retired individuals asked their family for financial assistance in the last year. This is more than double the figure for the previous year, just 119,000. In fact, there are also reports that some pensioners are even returning to work.

A number of factors seem to be contributing to the minimal pension funds, with a lack of financial planning being the main issue. A number of reports have emerged recently of people not planning for their retirement in their earlier years.

Craig Fazzini-Jones, a director at MGM Advantage, said: “It is tragic that so many people's retirement dreams fail to come to fruition. The pressures facing retirees have increased significantly over the past six months as the rising cost of living continues to erode their disposable income. So it is essential they make their pension fund work as hard as possible by making the best decision on how they turn their fund into a retirement income.”

Beginning a financial plan at an early age is vital if you are to enjoy a comfortable retirement. Speak to an independent financial adviser today and find out more about planning for the future.