Professor Debbie Price speaks on BBCs Moneybox on managing money in later life
16 May 2018
Money Box Live on Tuesday 16 May features an issue raised by listener Anne from Dorset who got in touch to tell the show she feels "practically paralysed" when it comes to making decisions about spending money.
She is 65 years old, retired and has an income of £20,000 a year through a combination of pensions and ad hoc work. She also has savings.
But she has no idea if this will be enough to live comfortably in her retirement.
She sees friends going on cruises and splashing out on luxuries which she'd love to do, but she is frightened of running out of money so ends up doing nothing.
Anne says she knows she is fortunate to have a steady income, but she's not really enjoying retirement because she's too scared about her finances.
The feature, presented by Louise Cooper included guests Michelle Cracknell, Chief Executive, Pensions Advisory Service, MICRA Director Professor Debora Price and Jenni Allen from consumer group Which?
Debbie told MICRA: “Anne’s predicament highlights how very difficult it is for people to manage money in later life because very few people know when they are going to die. It is one of those situations where averages just don’t help you. The direction of pensions policy is making this insecurity much worse – the more we individualise the risk of longevity in old age, the more problematic this becomes for people at an individual level. This may give the illusion of control and choice, but the uncertainties that this leaves people with are really not good – either for them, or for society as a whole.”