A staggering 27% of people in the UK have made “no plans” for their retirement income, according to an industry survey. With workers not saving enough, and a lingering climate of misunderstanding, it has never been more crucial to speak to an Independent Financial Adviser to get your retirement planning in order.
No, you haven’t misread that statistic. More than a quarter (27%) of respondents to this recent poll admitted to having made “no plans” for their retirement income. What we can surmise from that then is that the UK isn’t doing enough to save towards our pensions.
We are a nation that’s happy to “make do”
It seems we are a nation that’s happy to “make do”, as the research also reveals that of the 2,000 or so surveyed UK adults, a quarter were planning to rely heavily on their workplace pension and a further 17% were satisfied with counting on the state pension to fund their retirement plans.
Interestingly, but perhaps not surprisingly given soaring university tuition fees, younger people were found to be far less likely to rely on government incomes. According to the findings, a mere 8% of 18 to 34-year-olds said they’d be happy to depend on state contributions. Whereas, 25% of people aged 55 and above were happy to rely on the state.
The UK is “under-prepared” for retirement
Angela Maher, Managing Director at Acumen, is concerned that the UK is “under-prepared” for retirement. “These statistics reveal a worrying trend of under-preparation among a large swathe of UK savers. What it tells us is that many people are probably unsure or not confident enough to put viable plans in place for their retirement years.
This is exactly why it is important to speak to an IFA to ensure that you’re fully prepared for the financial implications of giving up work. We want you to be able to enjoy those years as much as possible. With that in mind, we can help you to make the most of your savings now, so that you can make the most of retirement later
The wealth gap between generations
These findings come hot on the heels of a government inquiry that aims to assess the wealth gap between generations. The Work and Pensions Committee has launched an “intergenerational fairness” enquiry to see whether the current generation of people in or approaching retirement will over the course of their lifetimes have enjoyed and accumulated much more housing and financial wealth, public service usage, and welfare and pension entitlements than more recent generations.
The group born in the middle of the baby boom (between 1956 and 1961) have been forecast to receive 118% of what they contribute from the welfare state. While recent research shows that younger people are on course to enjoy less wealth at each point in their lives than earlier generations had acquired by the same age.
The Committee’s inquiry will investigate the extent to which this disparity is a consequence of government policies, such as the “triple lock” which protects pensioners’ incomes, and broader economic and demographic trends. It will consider steps that could be taken to address any intergenerational unfairness.
To discuss your financial plans with one of our dedicated team, please contact us today on 0151 520 4353 or email [email protected].