A NEW REPORT REVEALS THAT MILLIONS RELY ON GUESSWORK WHEN PLANNING FOR RETIREMENT

Millions of UK adults are approaching retirement guided more by intuition than by careful planning, according to recent report findings [1]. The research reveals that one in six people (16%) rely on gut instinct to determine how much they will need for a financially secure retirement. Alarmingly, nearly two in five (39%) have not calculated their retirement needs at all.

Among these, 43% of Generation X and 34% of Baby Boomers admit they have yet to do the maths. Many are either approaching or have already reached State Pension age. This lack of preparation poses real risks. Nearly half (47%) worry their savings will not last throughout their retirement, including 31% of Baby Boomers. It presents a sobering snapshot of Britain’s retirement readiness.

COMPLEXITY OF RETIREMENT PLANNING

One key reason people resort to guesswork is the sheer complexity of retirement planning. There are countless factors to consider, including inflation, the age at which you expect to retire, lifestyle aspirations and additional sources of income. Making sense of it all without the appropriate tools or guidance can feel overwhelming. Another challenge is connecting with your future self. For many, retirement feels distant, competing with the immediate demands of daily life. This can make it tempting to postpone planning, hoping it will all come together later. However, delaying can result in missed opportunities to build financial security.

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Source data: [1] Ipsos Mori conducted research among 6,000 UK adults. Fieldwork was conducted between July and August 2024. Data was weighted post-fieldwork to ensure the data remained nationally representative on key demographics.

This article does not constitute tax, legal or financial advice and should not be relied upon as such.

Tax treatment depends on the individual circumstances of each client and may be subject to change in the future.

For guidance, seek professional advice. The value of your investments can go down as well as up, and you may get back less than you invested. Tax planning is not regulated by the Financial Conduct Authority.