State pension 'is insufficient to provide for everyone'

People approaching retirement age may wish to look into taking out savings accounts, it has been suggested.

It could be essential for older people to take the time to compare savings on products such as ISAs and fixed rate bonds prior to giving up work due to issues with the state pension in order to ensure they benefit from the highest possible reurns on their savings.

That is according to Philip Perry, co-founder and financial planner at Ark Financial Planning, who has indicated that the effects of the worldwide monetary slump have contributed to the fact that there is not enough cash for everyone looking to give up work permanently.

"I think what you have seen over the last number of years is the government's understanding that there is insufficient funding available to sustain people in retirement," he explained.

Mr Perry went on to state that factors such as people living for longer are having a large effect on the Conservative-Liberal Democrat alliance's ability to offer enough money to retirees.

Recently, Robin Ellison of Pinsent Masons noted that many Britons are failing to properly plan ahead for their time after finishing work.

Credit card debt can be managed by equity release, it has been suggested.

Older mortgage holders who are struggling with debts accrued on personal finance options such as credit cards should consider equity release as a method of relieving monetary pressure on themselves.

That is the opinion of Philip Spears, acting chief executive of FirstStop Advice, who said that "high interest loans or debts" can be managed effectively by equity release, but this is something that many Britons are unaware of.

Mr Spears noted that "around 75 per cent of older people own their own home", meaning that financial problems that have occurred over the duration of the global economic downturn could be eased by releasing equity.

He went on to say that he had encountered a couple who had "25 credit cards up to their maximum".

Philip Perry, co-founder and financial planner at Ark Financial Planning, stated recently that the state pension may be insufficient for many people in their retirement.