Aug 15 2008
Legal and General has drawn attention to the issue of illness for people saving for retirement.
To build up a pension of £20,000 per year, a 30-year-old would have to put aside £292 per month – but this figure increases if the saver suffers an illness.
Depending on the illness and recovery time following it, income and the ability to save could be severely impaired.
Postponing saving for retirement by ten years could mean monthly contributions rising to £635 per month, for example. Taking out cover could prevent facing such a rise.
Bonnie Burns, protection product marketing director for the company, said: "Critical illness cover should be an important consideration for anyone looking to protect their lifestyle and their ability to continue to save."
She added that the sooner savers take out a policy, the lower the cost.
"You can protect your most important years in terms of savings capacity," Ms Burns concluded.
This week, Key Retirement Solutions said many British people are set to retire in debt.
