People are living longer and longer - putting the squeeze on the state pension.
The UK is facing a potentially catastrophic "pension pinch" - thanks to increasing longevity rates.
A report from the Life Trust Foundation was released today, claiming that pension providers as well as the government need to work together to tackle the problem, which could see millions of future retirees living in poverty. The comments were issued in the wake of research, showing that half of all British workers are not currently contributing towards a personal pension.
This would mean that the employees will become increasingly dependent on the state pension - which is itself being squeezed by the increasing numbers who are living into advanced old age. Indeed, thanks to advances in medicine, today's 50-year-olds have a 25 percent chance of living to the age of 95 - by which time they will have been claiming on their pensions for 30 years.
A seminar on the issue is also being hosted by the Life Trust Foundation, with participants including pensions minister Mike O'Brien, director-general of the Association of British Insurers Stephen Haddrill and European Commissioner Charlie McCreevy.
Speaking ahead of the conference, Mr O'Brien commented: "People are living longer but some are not saving enough for later life. It is one of the biggest challenges facing us. We're reforming the pensions system to avert a crisis in the future.
"The state, employers and individuals must all play their part. There is a personal responsibility to save so that people can enjoy the type of retirement they want."
Compare savings accounts via money.co.uk
