'Baby gloomers' retire with poor pensions

Tuesday, March 9 2010

The generation that is starting to enter retirement may be suffering from poor pension income, according to one expert.

Director of Churchouse Financial Planning Keith Churchouse said the baby boom generation have entered the pension system and should be reasonably satisfied with their financial circumstances.

However, the "baby gloomers" that are starting to come through will probably be very disappointed with their pension levels.

This group may lack final salary schemes and some may not have properly planned for this stage in life.

Low annuity rates and longer life expectancy could also be hitting this generation, Mr Churchouse claimed.

Rather than using pension schemes "many people have switched to things like buy-to-lets, as an example, where at least they can see bricks and mortar", he continued.

His comments follow reports from the National Association of Pension Funds, which found that just 34 per cent of savers thought their pension would be adequate income in retirement.