New research from our friends at LV= finds those approaching the minimum retirement age of 55 are spending worryingly little time thinking about their retirement options. As a result, they have a poor understanding of their financial situation and often fall short of what they want to live off.
Given the lack of time people spend thinking about their future, it’s unsurprising six in ten (62%) 45-54 year olds don’t know how much they have saved for their old age. If people spent more time planning for retirement this could help better identify whether they are saving enough.
At Anstee & Co we offer independent advice and have various planning options to support you.
What’s happening with retirement at the moment?
- Since the pension freedoms in 2015, you now have more flexibility and choice when it comes to your later life options. However, the increasing amount of choice has caused confusion and means people need to start thinking about and planning their retirement earlier.
- New research from LV= found those people approaching the minimum retirement age of 55 are spending little time thinking about their options.
- LV= found 51% of respondents aged 45-54 didn’t think about their retirement at all last year. Those that did, spent more time planning a holiday than their old age. They spent an average of three hours and 42 minutes planning their retirement, compared to five hours 42 planning a holiday. People even spent longer planning for redecorating a room than their retirement – which came out as five hours 6 minutes.
Saving for your retirement
- The research also found 62% of 45-54 year olds don’t know how much they have saved for later life.
- If people were to spend more time planning for their later life (than perhaps organising a holiday) it might put them in a better position. Its important to understand whether they are saving enough of their hard-earned money to live off in their retirement years.
- Of those surveyed who are aged 50 and over, will on average expect to need around £1,360 a month to live comfortably in later life, but this means someone retiring at 55 would need to have around £311,000 saved, assuming they qualify for the full state pension. The average pension saving for those surveyed aged 45-54 is £71,342 and 39% of those have less than £50,000. 13% have nothing at all.
John Perks, Managing Director of Retirement Solutions at LV=, said-
We urge anyone approaching retirement to check their pension pots annually, and consider using a professional financial adviser to help them make a plan. From 2019, the Pensions Dashboard will be crucial in helping people better understand their financial situation by allowing people to view all their pensions in one place but this will still require consumers to log on to the system. We also want the regulators to make pension providers send examples of future monthly income to consumers annually so people are encouraged to plan more.
To find out how Anstee & Co can help you with your retirement planning contact us for a free initial meeting. The meeting can be held at a time and a place convenient to you. We have offices in Kettering, Stamford and London. Together with meeting rooms in Wellingborough, Corby, Towcester and Northampton.
PS. We do not do not plan holidays!