A new class of OAPs identified by leading wealth manager – OOPs! Tuesday 24 June 2008 PDF Print As the population ages, a potential new class of pensioner is rapidly emerging according to a leading Gold Standard wealth manager. OOPs, or, Out Of Pocket Seniors will slip into retirement and age long beyond their means. And for many they may not even see it coming. The revelation comes on the back of research* showing just how great the prospect of living to an advanced age is. Lee Robertson of City-based wealth management firm Investment Quorum said: ‘Many feel that retirement will be the Golden years of their lives but they may be living off coppers! There are of course real benefits people will see from living longer than their parents and grandparents. Better healthcare and greater independence are all pluses but increases in the cost of living and lower returns on pension annuities may conspire to take the gloss off retirement for many. According to updated actuarial assumptions a 35 year old has a two in three chance of living to 85, one in two chance of making 90 and more than a one in ten chance of living until 100. ’ Lee argues that if we are now, on average, living twice as long as people did 200 years ago then many of the financial models we have adopted, even in the past few decades are no longer appropriate for a new generation of retirees. ‘Simply sticking to the work until 65, draw a works pension, live till early seventies approach is no longer good enough.’ Specific planning using intelligent assumptions will assist those approaching or planning for retirement. They should; • Know their number. – how much capital is required to fund the desired retirement income. • Live for tomorrow as well as today – get rid of high-interest debt and make an early start on retirement savings etc. • Diversify pension savings vehicles – balance savings within an over-arching retirement strategy. It is not all about pension plans. • Get advice on asset allocation – young investors are often too cautious and older investors too aggressive. • Set up a lifetime income plan at retirement - plan for a long retirement and modify income requirements to this timescale. *Continuous Mortality Investigation/Life Trust 2008 ends For more information please contact Dan Doherty or Neil Fullbrook at Cadence Market Strategy on 0207 847 4037 or email: dan@theCadenceTeam.com or neil@theCadenceTeam.com or Lee Robertson at Investment Quorum on 0207 337 1390 This press release was distributed by ResponseSource Press Release Wire on behalf of Cadence Market Strategy in the following categories: Personal Finance, Business & Finance, for more information visit http://pressreleasewire.responsesource.com/about.