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Retirement saving must remain 'a priority'
31 March 2008 12:00
Rising debt levels are making it harder for people to put money away, according to a specialist wealth management service, but they must continue to save up for retirement.
ADDIDI Wealth's director Sophie Moffat attributed the growing difficulty Britons face in saving money to higher interest rates hitting them as they remortgage their homes, as well as to an increase in real inflation driven by climbing utility bills.
She claimed that the UK had been living on debt and that the typical two per cent rise in rates was even more substantial in light of recent growth in mortgages and personal and secured loans, with the credit crunch now bringing the days of cheap lending to an end.
Nonetheless, Ms Moffat urged people to really sit down and consider their income and outgoings, but advised them against making any cutbacks in their long-term savings for retirement, which she explained could be really difficult to build up again.
The importance of this was also highlighted in a recent poll by Prudential, which found that over one in five people retiring this year fear that they will be unable to achieve all their goals or to even maintain a decent standard of living once they have given up work.
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