Pension saving 'should not be put off until later life'

Posted by Andy Jowett.

Self-employed savers should not make the mistake of thinking they can delay investing in a pension until later life, according to one expert.

Keith Churchouse, director of Churchouse Financial Planning, said too many people have "dismissed" the idea of putting money away for their retirement from an early age.

They often assume they will be able to rely on the state, or that they can start saving at 50 and "catch up".

"Sadly, many of them will find they will fall short of expected income when they get to retirement," Mr Churchouse stated.

His comments come after Friends Provident chief executive Trevor Matthews urged savers to embrace pension planning as early as possible.

He warned that leaving it too late means individuals face the "stark choices" of working longer than they had intended or accepting a lower standard of living.

Research published earlier this year by Prudential shows a man retiring in 2010 can expect an average annual income of £19,600 a year from their pension.

Meanwhile, a woman will typically receive £12,200.