Forty-one per cent of the UK's population will run out of retirement income by the time they reach the age of 85, according to Lincoln Financial Group.

Other research shows that 65 per cent of the UK population are expected to live to this age, causing great concern to Lincoln. Eleven per cent said they are concerned that their pension pot will not stretch to provide them with adequate money in retirement to the age of 70.

Lincoln is therefore urging people to make sure they are managing their assets in a way to ensure an income in retirement that will meet their requirements. The research did, however, show that over half of the UK is thinking about how best to spend their retirement income, and 37 per cent intend to use their income evenly throughout their retirement, and 20 per cent plan to spend it sparingly in order to guarantee enough money for old age care.

"Increasing longevity means that it is more important than ever for people to seek financial advice to work out a retirement plan that will suit their individual circumstances and provide them with an income for life," said Simon O'Connor, head of products and marketing at Lincoln Financial Group. "With Lincoln i2Live, retirees can protect their retirement income levels against erosion by inflation - a problem affecting conventional level annuities - while maintaining a level of security with the unique Income Guarantee Option."

- Pensions Age January 2009

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