We recently commissioned some research* to better understand the issues people face when it comes to giving up work. Final salary pensions continue to decline and life expectancy continues to rise. Pensions will need to stretch further. So, we wanted to understand how we can help our members prepare for retirement.
For many, our findings make gloomy news. We learned that one in three middle-aged people expect to survive solely on their state pension*. And there could be a shortfall of more than £68,000 over the course of their retirement. That’s close to £400 out of pocket each month due to a gap between expectations and reality.
Research shows that just four in ten people in middle age have a private pension in place. More than half of people aged 40 to 60 are worried about affording retirement. Four in ten believe they won’t be able to afford the lifestyle they want when they finish work.
Our Director of Home Propositions, Jason Hurwood feels our industry can do more to help:
"We are living longer and need more money to keep us going. The reality is that older people risk missing out at a time in life when they want to relax and enjoy themselves. As an industry we really need to do more to help people access their money in later life and it is something we are continuing to explore.”
Getting into good financial habits now, is a key part of securing your financial future. Here’s a few things you can do: