Three quarters of UK adults struggle to picture themselves in retirement
UK adults have an average eight-year blind spot when it comes to financial planning – and can only see themselves in the future as far ahead as 2023, new research from Standard Life reveals.
The failure to be able to create a vision of our future is worse for around a third (33%) who can only see four years ahead, meaning that they can’t picture themselves or their financial needs for 2020 or beyond.
Spend now, worry now
When it comes to retirement, around two thirds (71%) of working adults struggle to see themselves once they finish work, while a similar figure (68%) admit to worrying how they will cope financially in retirement, with 1 in 6 even doing so on a daily basis. A third of us (33%) expect to be worse off in retirement.
Despite these growing financial fears, the attitude of most appears to be ‘spend now, worry now’, with the average adult only saving for 2.8 years ahead, while 1 in 4 only have money measures in place for the next six months. A fifth (19%) of young adults are unable to envisage themselves more than a year in the future, which may explain why the average person doesn’t start a pension until they reach 31.
Change in attitude
According to the research, the majority of us would like to see in our 60th celebrations without the worries of work – 59 was revealed to be the ideal age for retirement, yet 64 is the age most of us expect this will realistically happen. However, retirement is seen as no time to relax by some – 1 in 10 (11%) plan to use this time to set up their own business.
With the biggest changes to the pensions sector recently coming into effect, financial experts are predicting a change in attitude towards securing our financial futures.
Securing our financial futures
The new pension reforms provide a good opportunity for people to really think about and evaluate their future finances, and the options available to them. However, this research highlights that many people across the UK are struggling to plan ahead. Making any decision regarding your pension pot should not be taken lightly as it could have big consequences later down the line.
Many people may have a real fear of facing up to long-term financial matters. This is often linked to a fear that we are not going to be able to take care of ourselves and our families when our income-generating capabilities decrease in later life. So please take some action – this problem is not going away. Use a site such as Vouched For or Unbiased, or perhaps one from a professional body such as the Institute of Financial Planning. Get to see several financial planners and ask them some searching questions. The evidence suggests true financial planners add real value for our clients including peace of mind!
All figures are from Opinium. Total sample size for the survey was 3,009 adults. Fieldwork was undertaken in February 2015. The surveys were carried out online. The figures have been weighted and are representative of all GB adults (aged 18+)
INFORMATION IS BASED ON OUR CURRENT UNDERSTANDING OF TAXATION LEGISLATION AND REGULATIONS. ANY LEVELS AND BASES OF, AND RELIEFS FROM, TAXATION ARE SUBJECT TO CHANGE.
A PENSION IS A LONG-TERM INVESTMENT. THE FUND VALUE MAY FLUCTUATE AND CAN GO DOWN. YOUR EVENTUAL INCOME MAY DEPEND UPON THE SIZE OF THE FUND AT RETIREMENT, FUTURE INTEREST RATES AND TAX LEGISLATION.