People’s expectations of what they can afford may be too high and could lead to them working for longer, it has been suggested.
Padraig Floyd, the editor of Pensions Management magazine, noted that many consumers want “a house, two holidays and to be able to go out for meals regularly” but that the majority do not have enough money to maintain this lifestyle.
He added that a large proportion of individuals fail to prepare for retirement until they are older.
“People’s expectations are much higher now than they have been in the past and they just don’t have enough to live on,” Mr Floyd commented, claiming: “There are very few people today who will be saving enough for retirement.”
This may lead to them experiencing debt management problems later on in life.
Meanwhile, Age Concern has warned that older people may suffer the most from rising unemployment, as in the last two recessions they were disproportionately affected by job losses.
By Jamie Price