The firm’s survey of over 50s shows that 6 in 10 (61%) have not requested a state pension forecast and are therefore not informed about the level of pension they might receive, despite this being a mainstay of income for many when they retire. Only 58% say they have a will, while only 35% feel they are adequately prepared for their retirement.
Given that, for most, retirement will open up a period in life when more time and options will be available to do as they please more often, it is unfortunate that around 1 in 10 (9%) of all those interviewed said that they were “simply daunted” by the whole idea of retirement.
Andrew Tully, pensions technical director at Retirement Advantage, said: ‘In 2017 we find that there is a perilously low level of understanding and financial activity in preparing for retirement. We don’t want people to lurch, like zombies, towards their retirement. Some of this comes down to real fundamentals such as: “Do I have a will in place?” or “Just how much is my state pension income going to be worth when I retire?” These are relatively easy things to do and find out, but it shows more simple help is needed.
‘In particular, we would stress getting an accurate understanding of the pension the Government will pay you. The difference can be over £100k through a 20 year retirement.
‘Many of those we interviewed say they will need to supplement the income they receive from the state. This is unsurprising, but unless people have the numbers then they can’t properly plan how any income from workplace pensions fits, or work out if they might need to unlock some of the value in property to get the desired standard of living. There is a real need for people to take time to sit down and consider their retirement plans. For those that are daunted or want an expert to help them, then a contacting a regulated financial adviser is a great place to start.’
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