05 March 2019

Pensions of tomorrow – will they measure up?

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:

Budget

Check your statements line by line so you’ll know where every penny’s going. You may even find you’re paying for things you no longer need. And why not try our online budget calculator? It can help you take control of everything that’s going in and out of your account each month.

Keep track

If you haven’t got it yet, our Banking app is a pretty good way to keep tabs on your money.

We were founded when people came together to save money and help each other buy homes, so it’s no surprise we’re big fans of savings. And we think putting money away as regularly as you can is a really good idea.

Get expert help

And last but not least a fresh pair of eyes on your finances and a different approach to the way you manage your day-to-day money can often be a big help. Pensions advisors can walk you through your current pension provision and make a plan to bridge any gap.

We don’t currently provide pensions at Nationwide, but we can help you work out your retirement needs as part of our financial planning service. Why not pop in to branch for a chat?

*Research by Censuswide: total sample size was 1,013 UK 40 to 60 year olds in employment. Research ran from 21/01/2019 to 17/02/19.

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