It’s no secret that the traditional approach to retirement planning is becoming increasingly obsolete. While previous generations may have depended on their employers to provide them with a comfortable retirement, many of today's workers are often left to their own devices to save for their retirement. However, even as individuals take on more responsibility for their financial futures, they face a number of challenges that can make this task all the more daunting.
Factors like increased longevity and delayed marriage are making it harder than ever for people to accumulate the savings they need to retire comfortably.
Whether you're just starting out in your career or nearing retirement age, it's never too early or too late to start planning and saving for the future.
Research into the attitudes of the over 50s towards their pension has uncovered that half (49%) regret not saving into their pension sooner, and almost two hirds (64%) wish they had contributed more into their retirement savings at an earlier stage.
A quarter (26%) stated that they only started paying into their pension after they turned 30 years old, primarily because they did not feel financially stable enough to contribute any sooner (51%). Many, understandably, prioritised raising children (42%) and paying of their mortgages (40%) before putting any surplus cash into their pension.
However, a third put leisure/holidays (32%), clothing (21%) and their pets (10%) before their retirement income. It’s easy to see why people would prioritise these ahead of pension planning.
Almost four in ten (39%) people over the age of 50 believe that an income of between £10,000 – £20,000 per annum 04 in retirement will be enough to ‘live comfortably’. This is despite figures announced stating that £20,800 per annum will only provide an individual with a ‘moderate’ standard of living in retirement. To enjoy a ‘comfortable’ standard of living, the amount would need to increase to £33,600 per year.
A quarter (24%) of those aged over 50 believe that a personal contribution of between 0% to 5% of their salary is an ‘appropriate and achievable’ level to attain a savings pot big enough to support them in retirement.
Hindsight is a wonderful thing and life in your 20s and 30s can often take over, with children to raise, debts to pay and holidays to be had. However, it’s important to take stock of your financial situation early. It’s also important that people are realistic about how much they might need to live on in retirement.
By taking a proactive approach to retirement planning and seeking out expert professional advice where necessary, you can position yourself for success and enjoy the retirement you deserve.
To discuss your retirement plans get in touch with Michael 02380 848410 or michael@oysterfinancialplanning.co.uk.
