A retirement fund is what many people here in the UK look forward to once they come to the end of their working life.
While the workplace pension scheme is currently rolling out to all employees within the country who don’t currently have their own pension, we might be heading towards a pension disaster according to a survey undertaken by LV – one of the UK’s largest insurance providers – that still might not be enough for some people to live off when they hit retirement age.
Some People Have Nothing Saved
Despite the new workplace pension regulations coming into force this year, the survey highlighted that 28% of the UK’s non-retired population haven’t actually put anything into a pension pot. This figure is especially concerning when looking at the percentage of over 55’s who have yet to put anything into a pension scheme, despite being close to the current retirement age – a huge 20%.
The survey also looked into how much the participants expected to be able to live off comfortably if they did receive a pension – regardless of how much they have already saved.
Around 39% of respondents agreed that they could live off £2,000 per month during their retirement years, but a worrying figure of 21% of responders said that they didn’t know how much money they would be able to live on.
John Perks, the Managing Director of LV Retirement Solutions has commented that these figures are astounding financial experts around the UK.
“It’s extremely worrying that such a large proportion of people nearing retirement still don’t yet have anything saved, especially when many think they’ll need around £2,000 a month to live comfortably,” he says.
The Concerns of the Consensus
It’s not just the financial professionals that are concerned by the thought of people retiring with little to no retirement savings – the people who were involved within the survey also highlighted some of their concerns as well.
In fact, 43% of the people surveyed by LV stated that their main concern about facing retirement was that they wouldn’t be financially prepared for it. This was only surpassed by 46% of surveyed people worrying about the physical and mental effects of retirement and getting older.
What Does This Mean For Pension Saving?
Although this survey has highlighted an extremely worrying issue regarding the state of pensions and retirement savings within the UK, there are ways that we can help mitigate the problems that people may possibly face with regards to their funds once they hit retirement age.
One such way is to start saving now if you haven’t already – saving at least something is better than saving nothing at all. Here at Burton and Fisher Financial Services, we have a team of dedicated pension professionals who are on hand to help you manage your pension schemes to get the most out of your money once you are eligible to benefit from it.
If you have any concerns about the future of your finances, please don’t hesitate to get in touch with us today – we’ll be more than happy to arrange a meeting with one of our experienced financial advisers to talk you through how we can help you.