The bomb is ticking, and as time goes on, the problems will become more compounded with each generation.
Having planned for retirement, people need to shop around to get the best-value annuity; it’s an open market and people are not necessarily offered the best rates from their own pension providers.
It’s also important to actively seek out information and advice. The Association of British Insurers states that six months before a person is due to retire, a wake-up pack should be sent out. This is far too late, and the process needs to begin at least five years before retirement so people are planning for their futures.