It’s a simple question, yet the answer according to recent research collated by Opinium, is that almost three quarters of UK adults struggle to see themselves in retirement and can only forward plan with a limit of 8 years, taking them now to 2023. On the contrary though, 68% worry about coping financially when they reach this milestone.
Are you planning enough in advance?
The statistics
From a sample of over 3,000 UK adults, aged 18 and above, these statistics were uncovered:
- 71% of working adults find difficulty in picturing themselves when they finish work
- 1 in 6 worry about financial security in retirement on a daily basis
- One third actually expect to be financially “worse off” in retirement
- One third can only plan ahead for a four year window
- The average desired age for retirement is however, 59, yet most expect to work until 64 at least
“In our experience, as specialist financial advisers for over 25 years, the inertia for many is linked to the fear of facing long-term commitments. When they start to discuss matters though they realise that measures can be put in place to plan ahead in a strategic way.”
Darren Scott Guinness
Lack of ability to long-term plan
The attitude appears to be “spend now” but also “worry now” as the fear is there but action is not being taken to alleviate this and plan ahead.
The average adult has enough in savings for broadly a 3 year period, however, one quarter only have enough put aside for a six month contingency.
This inability to long-term plan is leaving people short of money when they do finally reach retirement and preventing people from retiring at the age they choose, with many knowing they will have to continue working longer to top up investments such as pensions, due to starting investing in their retirement plan too late.
The average age for a young adult to start their pension is 31?
Short term financial planning is better than no planning, however, sometimes the consequences of short term planning only, can still be significant.
The Pension Reform offers an opportunity for everyone to consider their retirement plan through new eyes. Working with a financial adviser will also help ensure all options are understood and considered.
Dental & Medical Financial Services help doctors and dentists to plan for and execute a successful retirement plan. This involves one-to-one advice, guidance and careful tracking of the market variables. Call today so we can help you too.
Tel: 01403 780 770