A new scheme, the online pension calculator, has been initiated by the Financial Services Authority (FSA) and the Association of British Insurers in an attempt to help people plan for their retirements – and possibly prevent them from falling into debt in later life.
Chris Pond, the FSA’s director of financial capability, remarked that it is important to look at all the choices available to them in order to maximise their money’s potential.
“The pension calculator can help you identify the implications of your pension choices and impact on later income to determine if you are on the right track,” he said.
Figures from the FSA predict that 31 per cent of people could suffer from financial difficulties during retirement, particularly during the recession where an increasing number of people are finding their money management skills to be insufficient.
At the beginning of the month, Becky Wilks of the Money Advice Trust advised those approaching retirement age to attempt to be debt-free prior to leaving work.
By Sarah Adie