What savers would do… if they had their time over again

1st December 2018 by RetireEasy


If you could wind the clock back, what would you have done differently when it comes to preparing for retirement?

A new survey of 2,000 UK adults aged over 50, with assets of more than £50,000 including property and pensions, has revealed some fascinating facts.

Despite retirement looming in the near to middle distance, only just over half (53%) of those surveyed by the London Institute of Banking & Finance and Seven Investment Management (7IM) said they feel “well prepared” for it.

That probably helps to explain why four out of ten (38%) worry about retirement.

However, it would take a large pension pot or a windfall of over £500,000 for many to consider taking professional financial advice.

Of those who are reluctant to pay for professional advice, 47% consider that they know enough to look after their own money and just over a quarter (28%) say they don’t have enough saved to justify an adviser.

One in five questioned (19%) say that – regardless of the size of their savings – they would never consider getting financial advice.

So, what are the biggest saver regrets?

Nearly half (48%) still in the pre-retirement stage recognise that they do need to save more. And, given their time over again: 58% would have started saving for their retirement earlier, 33% would have got on the property ladder sooner; and 30% would have spent less.

Nearly a quarter (24%) would have given their children more financial support.

Perhaps the most telling statistic is that over a third (34%) of pre-retirees said they will be working longer than they had hoped when they began work – on average more than seven years longer.

Peter Hahn, dean at The London Institute of Banking & Finance, said: “Statistically a 50-year old Briton is expected to live to age 81, so most will have to fund a minimum of 14 years in retirement.

“That means having a long-term investment strategy with less inflation-exposed cash – a balance many may not be confident about. So, while over-50s say they feel well prepared, these findings suggest a poor understanding of long-term risk and reward, risking poorer retirements.”

Your next step…

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