Recent figures from the insurance company Aegon reveal that 38 per cent of people are not confident about their ability to retire comfortably. The company surveyed 949 UK non-retired residents and discovered that 36 per cent have never estimated their income needs for retirement, 13 per cent do not have any pension savings and 26 per cent of those with pension savings do not know how much they hold in pensions.
It seems that many people are still unprepared for retirement and those approaching and even at retirement, do not know how much they have saved. The Aegon figures reveal that 38 per cent of over 65s do not know how much they hold in pensions.
It seems that many people still simply focus on living day by day – perhaps still concerned with paying a mortgage or other financial commitments. Others are stuck in the ‘sandwich generation’, supporting children who might be at university or still living at home while, at the same time, caring for elderly parents. This leaves little time to think about their own finances. And it seems that issue is expanding…
There’s now a ‘club sandwich’ generation, who are also propping up grandchildren and even, potentially, helping out their own grandparents at the same time! Statistically, this could be possible! A recent study by Prudential found that those retiring this year are supporting an average of three family members, with some bankrolling family members by as much at £4,000 a year.
So, it seems that many people stop worrying about their own financial future to support their nearest and dearest who appear to need funds then and there. Others simply just avoid looking into their pension pots, fearing they may contain less than they had hoped or will need.
As we always say, the earlier somebody thinks about their future finances, the more chance there is of getting on track.
At The Goodman Partnership, we can help you to understand if your lifestyle needs can be met in retirement and how the different options of drawing benefits compare.
With an increasing number of us living up to 30 years post-retirement – whether we think we will or not – it’s worth being as well prepared as possible.
Give us a call on 01892 500600 or visit: The Goodman Partnership