Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
The Corporate Debt Bubble Is Strikingly Similar to the Subprime Mortgage Bubble - 18th Feb 19
Stacking The Next QE On Top Of A $4 Trillion Fed Floor - 18th Feb 19
Get ready for the Stock Market Breakout Pattern Setup II - 18th Feb 19
It's Blue Skies For The Stock Market As Far As The Eye Can See - 18th Feb 19
Stock Market Correction is Due - 18th Feb 19
Iran's Death Spiral -- 40 Years And Counting - 17 Feb 19
Venezuela's Opposition Is Playing With Fire - 17 Feb 19
Fed Chairman Deceives; Precious Metals Mine Supply Threatened - 17 Feb 19
After 8 Terrific Weeks for Stocks, What’s Next? - 16th Feb 19
My Favorite Real Estate Strategies: Rent to Live, Buy to Rent - 16th Feb 19
Schumer & Sanders Want One Thing: Your Money - 16th Feb 19
What Could Happen When the Stock Markets Correct Next - 16th Feb 19
Bitcoin Your Best Opportunity Outside of Stocks - 16th Feb 19
Olympus TG-5 Tough Camera Under SEA Water Test - 16th Feb 19
"Mi Amigo" Sheffield Bomber Crash Memorial Site Fly-past on 22nd February 2019 VR360 - 16th Feb 19
Plunging Inventories have Zinc Bulls Ready to Run - 15th Feb 19
Gold Stocks Mega Mergers Are Bad for Shareholders - 15th Feb 19
Retail Sales Crash! It’s 2008 All Over Again for Stock Market and Economy! - 15th Feb 19
Is Gold Market 2019 Like 2016? - 15th Feb 19
Virgin Media's Increasingly Unreliable Broadband Service - 15th Feb 19
2019 Starting to Shine But is it a Long Con for Stock Investors? - 15th Feb 19
Gold is on the Verge of a Bull-run and Here's Why - 15th Feb 19
Will Stock Market 2019 be like 1999? - 14th Feb 19
3 Charts That Scream “Don’t Buy Stocks” - 14th Feb 19
Capitalism Isn’t Bad, It’s Just Broken - 14th Feb 19
How To Find High-Yield Dividend Stocks That Are Safe - 14th Feb 19
Strategy Session - How This Stocks Bear Market Fits in With Markets of the Past - 14th Feb 19
Marijuana Stocks Ready for Another Massive Rally? - 14th Feb 19
Wage Day Advance And Why There is No Shame About It - 14th Feb 19
Will 2019 be the Year of the Big Breakout for Gold? - 13th Feb 19
Earth Overshoot Day Illustrates We are the Lemmings - 13th Feb 19
A Stock Market Rally With No Pullbacks. What’s Next for Stocks - 13th Feb 19
Where Is Gold’s Rally in Response to USD Weakness? - 13th Feb 19

Market Oracle FREE Newsletter

The Real Secret for Successful Trading

Retirement Expectations of Consumers Fall Short

Personal_Finance / Pensions & Retirement Apr 12, 2018 - 09:49 AM GMT

By: MoneyFacts

Personal_Finance

• Over a quarter of consumers under the age of 45 only expect to retire after the age of 70

• 14.8% of consumers under the age of 45 worry they’ll never be able to retire

• 79.5% of those aged between 45 and 64 hope to retire by 65

• More than half of respondents knew exactly how much is in their pension pot

• Respondents desire for 63% of their current annual income to be their pension income


A new study from moneyfacts.co.uk has shown a shortfall in the expectations of consumers when anticipating retirement income. Some thought they will need to wait until they are over 70 years old before they can retire, while some even believed they never will.

While 75% of respondents aged between 45 and 64 hope to retire between the age of 55 and 65, the same can’t be said for those aged under 45. Our figures show that less than half (39.3%) in this age group hope to retire by then and only 18.5% think it’s possible.

Rachel Springall, Finance Expert at moneyfacts.co.uk, said:

“The changing landscape for pension provision is clearly upending the way consumers think about retirement. Most of the older respondents in our independent survey hope to retire by the age of 65, but very few under the age of 45 share this sentiment. Interestingly, national statistics from the ONS show that only 26% of the adult population in work expect to retire before the age of 65, with the majority (59%) expecting to retire between 65 and 69. This runs counter to the hopes of most survey respondents, regardless of age.

“That said, many younger consumers seem to be realising they can expect a later retirement, or in some cases, worry that they will never truly retire. Our study shows that while only 3.8% of respondents aged between 45 and 64 feel they won’t be able to retire until after the age of 70, more than a quarter (25.9%) of those under the age of 45 feel the same way. Even more concerning is the result that 14.8% of those under the age of 45 don’t expect to retire at all, compared to only 2.6% of those aged 45 to 64.

“With regards to the awareness of saving for retirement, it appears moneyfacts.co.uk users are relatively savvy with keeping tabs on their pension pot, as 55.7% knew how much they have amassed. However, there were still around a third of respondents with only a rough idea of what they had saved (31.3%), while 5.4% hadn’t even started saving for retirement.

“Clearly, not everyone prioritises the need to save towards retirement in the same way, while many may pin too much of their hopes on the state pension. Consumers should make every attempt to save an adequate amount of their income to ensure a more comfortable retirement. If left by the wayside, retirees could find themselves with very little disposable income.

“While auto-enrolment is a welcome step towards saving for retirement, it shouldn’t be assumed that the bare minimum will be sufficient to cover what individuals expect to retire on. According to our survey, consumers hope to retire with a pension pot that can give them 63% of their current level of income. However, they realistically expect to only receive 52% of this. Either way, it will require diligent saving throughout their working lives.

“Consumers should make every effort to prioritise their retirement provisions, particularly if they are getting close to retirement age. Keeping an eye on any investments and/or appointing an independent financial adviser to manage the pot through the years can make all the difference when it comes to realising one’s retirement hopes and expectations.”

www.moneyfacts.co.uk - The Money Search Engine

Moneyfacts.co.uk is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules