More than nine in ten defined contribution (DC) savers are at “high risk” of not achieving their expected retirement income, the Pensions Policy Institute (PPI) and Centre for Ageing Better warn.
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th June 2021 7:46 am
The Pension Policy Institute (PPI) has stressed the need to rethink the adequacy of retirement income in its latest report: “What is an adequate retirement income?”.
It reveals that only around 50% of people can expect to maintain a personally acceptable level of income in retirement.
PPI found that the proportion of people not achieving adequacy significantly rises if DB entitlement is not included. Depending on the method of calculation, this proportion can vary between 40% to 98%.
The report said that it underscores the importance of DB pension entitlement for current pensions. It added that it could be a concern for future generations who will reach retirement with lower levels of DB entitlement.