Continuing our look at why people aren’t saving enough for retirement and how this can be avoided, today we look at some of the statistics around this issue.

People who are not currently working are disproportionately affected, whether they are unemployed or full-time parents. Almost 60% of this group stated that they had no pension savings. If this is due to full-time parenthood, the parent may be forced to rely solely on their partner’s pension in later life. This is a risky strategy, not only because the pension may not be enough for both of them, but also because of the possibility of a relationship breakdown.

Another troubling statistic emphasises that one in every five people has no idea how much money they have saved for retirement. Surprisingly, as people get older, their level of uncertainty increases rather than decreases: while 14% of those under the age of 35 are uncertain, this rises to 22% between the ages of 35 and 54, and then to 24% among those over the age of 55.[1]

A pension is a long-term investment not normally accessible until age 55 (57 from april 2028 unless plan has a protected pension age). The value of your investments (and any income from them) can go down as well as up which would have an impact on the level of pension benefits available. Your pension income could also be affected by the interest rates at the time you take your benefits. Tax treatment varies according to individual circumstances and is subject to change.

Please contact us for more information on how we can help protect your future financial well-being and the options available to you.

Source data: [1] Survey by Unbiased and Opinium of 2,000 non-retired UK adults, conducted June-July 2020.