Just one-in-three (34%) UK adults have actively made a plan for how they will save for their retirement, new research by My Pension Expert has revealed.
They commissioned an independent survey of 2,000 UK adults. It found that, of those still in work, only 16% expect to be able to achieve a “comfortable” lifestyle in retirement based on the Pension & Lifetime Saving Association’s Retirement Living Standards.
Younger respondents are more optimistic, with 30% of those aged 18-34 expecting a “comfortable” or “more than comfortable lifestyle” in retirement. Conversely, a mere 13% of those aged 55 and above expect this outcome.
My Pension Expert’s survey also revealed that only 37% of UK adults know how much is saved in their pension pot. However, this figure rises significantly to 61% among respondents who expect a comfortable or more than comfortable lifestyle.
Just a quarter (26%) have used the services of an independent financial advisor to discuss retirement planning – again, this rises sharply (to 58%) among respondents who expect a comfortable or more than comfortable lifestyle.
In terms of where people are sourcing information about savings and investments, 36% use online sources and 26% use social media – among those aged 18-34, those figures rise to 42% and 37% respectively.
Lily Megson, Policy Director at My Pension Expert, said: “That millions of UK adults will work for decades but not enjoy a comfortable retirement at the end of it highlights that there is a pension planning crisis in this country. Not knowing how much is saved in pension pots, where those pots are, and how to best manage that money are all serious issues, and it is clear that both the Government and the financial services industry has to do much, much more.
“The earlier people start preparing for their retirement financially, the better chances they have of achieving their dream lifestyle. But there are many barriers in people’s way. Locating and monitoring pensions can be difficult, transferring pensions can be slow and stressful, and accessing reliable information or advice is not always straightforward.
“As we approach Pension Awareness Week, now is the time for the Government to bring forward initiatives like the pension dashboard, clamp down on opaque pension transfers and educate people about the value of independent financial advice and where to find it.
Only then will people across the UK be empowered to achieve the retirements they deserve.”
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