Majority of UK population not retirement ready
Large swathes of the UK public are not retirement ready. Just 7 per cent of people in the United Kingdom are prepared to live a financially secure retirement, according to the recently published Aegon Readiness Report.
More than 4,000 people took part in the survey, answering questions regarding their knowledge of retirement, spending habits and overall financial situation when it comes to pensions and saving for their mature years.
The survey took into account people’s expectations for their ‘golden years’ compared to the actual retirement plans they have in place. Scoring 70 out of 100 signifies that they are right on track to enjoy a comfortable lifestyle in old age. However a massive 93 per cent of those questioned didn’t score 70 or above, and now face the task of either increasing their pension pot during their working lives, or not being able to enjoy their desired retirement.
According to the survey, people in the United Kingdom would like an average annual income of £35,000 during their retirement, but in real terms, with the plans they have in place now, the more realistic yearly revenue for their later life only amounts to £12,000.
So what can be done in order to maximise wealth in retirement?
The results of this survey show that over 3.3 million people in the UK are not actively making plans for their retirement, and are intending just to rely on the State pension in their old age, and therefore not retirement ready. Retirement is constantly becoming a more personal responsibility, so it’s absolutely crucial that people start focusing on their pension pots as early as possible in their working lives.
Seeking professional, independent financial advice is paramount when it comes to saving for the future. As this survey highlights, failure to provide for retirement could result in individuals prolonging their working life well past retirement age or having to make unwelcome changes to their lifestyle as they get older. Neither of these options are attractive, yet can be avoided by taking control of personal finances, remaining realistic about retirement and devising, implementing and managing a sound financial strategy with a financial adviser.