IFS Report: 90% of UK Workers Underfunding Pensions - Discover 7 Strategies to Achieve Financial Freedom in Retirement
The Institute for Fiscal Studies (IFS) is planning a comprehensive pensions review. Recent research from the IFS revealed that 60 per cent of middle-earning private sector employees who are contributing to a pension are saving less than 8 per cent of their earnings, and nearly 90 per cent are saving less than the 15 per cent of earnings recommended by Lord Turner’s Pensions Commission. The IFS said almost all of this saving is coming in the form of “defined contribution” (DC) pensions, leaving individuals, rather than employers, exposed to market and other risks. The IFS warned that those retiring with DC pots face considerable difficulty and risk in managing their finances through retirement, with risks around running out of private resources or savers being so cautious that they have a needlessly austere retirement. The report noted that an increasing number of those approaching retirement live in expensive, insecure, private rented accommodation, warning that this