Actuaries are adjusting their annuity rates downwards to compensate for the fact that people now live longer, on average.In particular, self-employed people are likely to be hit hard. In 1996, some 54 per cent were not putting enough into their pension, a figure which grew to 64 per cent in 1999. This is caused by sharply falling annuity rates, which will reduce substantially the payout to be expected from maturing personal pensions or so-called money purchase schemes. People who are earning a decent salary simply cannot rely on the state."Fleming's research also shows that the number of people aged 50 to 59 who will be entering into retirement in financial hardship has doubled to 1.2 million since 1996. DESPITE THE constant talk about the need for retirement planning and Government initiatives on the pensions front, more people than ever before face financial hardship when they halt work.

These are the findings of a survey by Fleming Asset Management, the investment trust and pension provider. They show that, since 1996, when the company carried out its last survey on the same issue, the number of people who would be badly off at retirement has grown from 10 million to 13 million. The perception by individuals that they will be worse off in retirement also appears to be growing: whereas 62 per cent of people surveyed in 1996 felt they would be better off, this dropped to 51 per cent three years later.Ian Overgage, marketing manager at Flemings, says: "Even with the Government's proposals for lower earners announced in the recent Green Paper, the vast majority of people will still not benefit. That detail is often buried in the small print.Even one reputable high-street retailer has produced a leaflet for its winter sports insurance policy showing skiers skiing off-piste - although off-piste skiing is excluded by the policy, unless the policyholder is accompanied by a qualified instructor or a guide.And the page which lists activities that are not covered depicts skiers off piste.A spokesman for the company says that there was no intention to deliberately mislead, and that the wording of the brochure was perfectly clear.The pictures were merely chosen to reflect winter sports activities, the spokesman added.. Frequent skier policies provide up to four weeks' annual ski cover, starting at around pounds 50, but are more costly for those flying to the US.Don't Get Piste OffAS THE glistening sea of virgin snow beckons, not many people stop to think that most policies exclude off-piste skiing. Options offers an annual Europe plan for pounds 38, with a family policy from TravelPlan Direct starting at pounds 66.50. If you claim to be a specialist ski insurer, you have to cover the skis."David Sterling has his own tip "Split your skis up when you go in.

Put one round one side of the restaurant and one around the other."Always make sure that your policy covers passes, ski packs and lessons which you might be unable to use following an injury, but beware, as some policies set low daily limits, which would not cover all your loss.Similarly opt for a contract which compensates for piste closure following poor weather conditions.Many skiers are opting for annual travel policies, which allow them a summer break and typically provide two weeks of winter sports cover. A spokesman explains: "The reality is you can't expect skiers to walk into a restaurant wearing their skis. It is catastrophe cover, designed to provide emergency treatment and to get you home. Any prior medical condition is strictly excluded.A spokesman for the Insurance Ombudsman warns: "Policyholders should get approval for all medical treatment before it takes place to prevent disputes when they return to this country."A doctor in Switzerland might say that a particular form of treatment might possibly be necessary; the insurer could later dispute this."The Ombudsman relies on doctors on the spot when it comes to arbitrating disputes, but to avoid wrangles keep the insurer informed and get copies of all medical reports.Another contentious area is the loss of skis or equipment. Although most policies cover skiing equipment, they nearly all spell out the skier's "duty of care". So, if you leave your skis outside a restaurant or bar (extremely common) and they are stolen, the policy will not pay out.One exception is the contract from ski specialists DCT.