The Study, which surveyed 1,000 investors in the UK and 20,000 investors globally, showed that 14% of UK investors are “very concerned” that they will not have enough money in retirement whilst 30% are “quite concerned” by this concept.
Lack of interest
The results highlighted a worrying lack of interest in pensions with almost a quarter (24%) of those concerned saying they would prefer to spend their money on something else.
This issue is more evident in the millennial age group (aged 18–35) with 14% of those who felt concerned, saying they don’t have a pension and 35% saying they would prefer to spend their money on something else.
Insufficient funds were also a problem with 16% of concerned investors stating that they couldn't afford to save into a pension. A fifth (21%) of millennials who were concerned said they couldn’t afford to save into a pension.
Lack of Knowledge
Knowledge of pensions was also an issue with 39% saying their main reason for being concerned was because they didn’t know how much they should be saving each month to have a sufficient pension pot in retirement 31% said they weren't sure what investments to make for their pensions.
Only a quarter (26%) of UK investors said they weren't concerned about their retirement income stating the following reasons:
They have a regular savings account to support their retirement (59%)
They have a personal pension (53%)
They would be relying on an ISA to support their retirement (37%)
They have a sufficient workplace pension scheme which will see them through retirement (49%)
Investing in property was seen as another option with 19% of unconcerned investors saying they were relying on property investments to support them in retirement and 12% relying on downsizing their home.
Robin Stoakley, Managing Director of UK Intermediary commented: “We are concerned that the results indicate a general lack of engagement for pension planning. This is very worrying given the clear message coming through that future generations of pensioners will have to provide for themselves.
“We are particularly concerned for millennials as they will not benefit from the intergenerational transfer of wealth to the same degree as previous generations thanks to longer life expectancy of their parents and grand-parents. The pensions landscape has seen significant changes over the last three years and the need for financial advice and financial education is greater than it has ever been. Whilst products such as the Lifetime ISA and the Help to Buy ISA provide a welcome addition to savings options for younger people, they could be seen as confusing an already complex market.
“As an industry we need to do more to make it easier for investors to understand the importance of saving for the long term, and investors themselves need to take responsibility for their financial future.”
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