Oct
20
2010
Contractors 'do not have sufficient savings to aid retirement'
Posted by Daniel Frost
Contractors with umbrella companies who have taken out huge mortgages to pay for homes have "been sold a pup", according to a money expert.
John Davis, economist and wealth manager at Jonathan Davis Wealth Management, has said that many people have had the wrong idea that investing in an expensive mortgage was preparing them when it comes to saving for retirement.
Instead, he believes that homes are "going to lose a lot of money" in the years ahead and some contractors may end up losing all of their savings, as well as still continuing in debt.
Mr Davis added: "Those retiring in ten plus years will not have sufficient [savings] for a comfortable retirement, which could last decades."
People not preparing for the "biggest debt bubble" and the government giving banks vast sums have been pinpointed by Mr Davis as two problems that have helped cause this problem.
Recently, a study by AIB found that 54 per cent of adults do not know what income will be provided when saving for a private pension.
Contractors with umbrella companies who have taken out huge mortgages to pay for homes have "been sold a pup", according to a money expert.
John Davis, economist and wealth manager at Jonathan Davis Wealth Management, has said that many people have had the wrong idea that investing in an expensive mortgage was preparing them when it comes to saving for retirement.
Instead, he believes that homes are "going to lose a lot of money" in the years ahead and some contractors may end up losing all of their savings, as well as still continuing in debt.
Mr Davis added: "Those retiring in ten plus years will not have sufficient [savings] for a comfortable retirement, which could last decades."
People not preparing for the "biggest debt bubble" and the government giving banks vast sums have been pinpointed by Mr Davis as two problems that have helped cause this problem.
Recently, a study by AIB found that 54 per cent of adults do not know what income will be provided when saving for a private pension.