Workers fear a retirement of debt

In the Alliance Trust’s retirement survey, 1.7 million people are resigned to a retirement of debt and scrimping compared to only 500,000 who think they will be comfortable.

“It’s worrying to see that many in the prime of their working lives are most uncomfortable about their retirement prospects,” commented Hyman Wolanski, head of pensions at the trust

The findings come as an Axa investigation found that the current state pension would only provide for a family for three days.

With such low level of state provision to fall back on, Mr Wolanski said that he was alarmed at the level of savings people had built up.

Unless workers start saving now, he warned that many people are to face a retirement full of debt woes.

Mr Wolanski added that pensions were not the only way to save to guard against debt, highlighting the benefits of ISAs and other products.