retirement confidence

Only half of UK workers feel confident about retirement



Posted on: 10th October 2019

52 per cent of UK workers feel confident about their ability to retire comfortably. This is a slight increase from 48 per cent in 2017. This statistic comes from recent research by Aegon, which was published in their Retirement Confidence Survey.

The survey also released the following concerning statistics:

  • 10 per cent have no pension savings
  • 25 per cent of those who do have no idea how much they have saved
  • 36 per cent have never calculated how much they will need for retirement

According to Aegon’s pensions director, Steven Cameron, “There have been lots of positive stories such as the success of automatic enrolment and the new retirement flexibilities under pension freedoms. All of this has contributed to raising the profile of retirement planning, leading to people taking more interest and action, improving the confidence people have when it comes to being able to retire comfortably.

“But we must remain realistic. Overconfidence carries risks and people mustn’t be lulled into a false sense of security. While auto-enrolment means millions of employees are saving more for retirement, that doesn’t mean they’re on target for the retirement they aspire to or to maintain their pre-retirement standard of living.

“Furthermore, the growing population of self-employed are excluded from auto-enrolment and can’t rely on an employer to support their retirement funding. Realistically, there’s a lot more required to make sure you’ve saved enough for the retirement you would like.

“Whatever your age or circumstances, finding out more about your pension funds and prospects can only be a good thing.”

Building retirement confidence

Aegon believes there are 6 things you can do to help boost your confidence in how you can retire comfortably…

Take action now if you haven’t already

Save more and you will have more options when you do reach retirement. If you haven’t already, now is the time to work out how much money you may need when you retire. A good place to start is to base your financial needs in retirement on how you currently live. From there, adapt your current way of living to how you think you will actually live when you do retire. You can calculate this online, but we do recommend seeking financial advice to help outline your personal financial plan.

Retire later

Think carefully about the age at which you plan to retire. You may wish to stop working around the age of 60, but staying flexible will allow more time to save what you will need so that when you do retire, you will be comfortable. This means that not only will you not have to scrimp as much, but you will also have more to look forward to!

Get the full picture

Check your state pension entitlement as well as the state pension age as this will tell you exactly how much you can expect to receive, and at which point you will receive it. This will then help you calculate how much you must save into your pension.