Now's the time to 'be prepared'
Posted on Sep 23, 2019
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When it was first published in 1908, Lord Baden-Powell explained in his book ‘Scouting for Boys’ that the Scout Motto was ‘Be Prepared’ – something which he had founded on his initials BP. It was a motto he stuck by throughout his life and, in his final letter to scouts, following his retirement from public scouting in 1937, he stated: “Be prepared to live happy and to die happy.”
While ‘being prepared’ is something which is a useful motto for most areas of life, it is particularly key when it comes to wealth management. Indeed, what we do here at The Goodman Partnership is to support our clients to both ‘live happy’ and to ‘die happy’.
However, while we are supporting our clients to ‘be prepared’, The Financial Wellbeing Index 2019 reveals that employees are under-prepared and lacking confidence when it comes to retirement saving.
The Financial Wellbeing Index has been produced by Close Brothers in conjunction with corporate wellbeing expert Professor Sir Cary Cooper CBE, a leading expert in workplace wellbeing at ALLIANCE Manchester Business School, University of Manchester.
Close Brothers says that this echoes its previous Lifestyle Savings Challenge research, which found that among those approaching retirement, 65% were worried about inadequate income in retirement.
The research also showed that almost a third (31%) say that funding retirement is one of their top three money worries. This figure rose to 45% for the over 55 age group, as they approach retirement.
To counter this lack of preparation, a quarter of employees (24%) expect to need to work in retirement and 21% are relying on downsizing their home or equity release to have the necessary retirement income. In addition to pensions and savings, 16% expect to rely on inheritance to fund retirement income.
Jeanette Makings, Head of Financial Education at Close Brothers, says: “It is worrying that so many approaching retirement feel anxious and unprepared. With pension freedoms and reduced lifetime and annual allowances, pensions are no longer the only solution to save for a secure retirement, but they are still the bedrock.”
Meanwhile, Professor Sir Cary Cooper adds: “Going forward, we all need to think about the ageing population in the UK. We are living longer and must consider the extra money that will be required to fund a longer retirement, as well as the additional costs of social care.”
If you are feeling the need to be better prepared regarding your pension planning, then give us a call at The Goodman Partnership. As your local retirement planner in Tunbridge Wells, we’ll help you to weigh up your options and make the best decisions for the future.
Give us a call on 01892 500600 or click here.