In a recent survey conducted by investment comparison site Investing Reviews, the sentiments of over 2,000 UK citizens were revealed regarding pensions and retirement. The survey aimed to gain insights into public opinions and attitudes towards retirement, pensions, and investments, shedding light on the nation’s stance on these topics.
Interestingly, the survey findings indicate that UK sentiment regarding retirement ages closely aligns with the ongoing tensions in France, where protests have erupted over the government’s decision to raise the retirement age from 62 to 64.
Out of the respondents in the UK survey, a significant 68.71 percent believe that the current UK retirement age, which stands at 66, should be lowered. Additionally, 71.16 percent of participants expressed the belief that retiring in the UK has become more challenging than ever before.
However, the survey conducted by Investing Reviews revealed that achieving a lower retirement age may not be a simple task. A significant majority of respondents, 62.60 percent, expressed that their pension alone is insufficient for a comfortable retirement and that additional investments would be necessary. This sentiment is likely due to over half of the respondents (55.82%) stating that they are unable to make the desired level of contributions to their pensions.
What impacts retirement decisions?
The survey also examined the impact of employer contributions on retirement decisions. Surprisingly, more than a third (42.66%) of respondents indicated that they would consider transitioning to an entirely different sector if it meant receiving greater employer contributions to their pension.
An analysis of official government data from the Office for National Statistics (ONS) conducted by Investing Reviews revealed that the sector with the highest percentage of employers contributing 20 percent or more to employee pensions is “public administration and defence (including compulsory social security),” while the “wholesale and retail trade (including motor vehicles and motorcycle repair)” sector had the lowest percentage at just 1.3 percent.
How much is in your pension?
The findings of the survey also highlighted a lack of awareness among respondents regarding the value of their pensions. Over a third (34.93%) stated that they were unsure about the exact amount in their pension, while another third expressed concerns about retiring comfortably in the UK.
Furthermore, respondents’ frustration with the difficulty of retiring comfortably in the UK and their inability to contribute adequately to their pensions was evident in their responses to the question about retiring outside the UK. Approximately 42.66 percent of participants agreed that they would choose to retire abroad, raising concerns about the rising inflation and cost of living that retirees may struggle to keep up with if they remain in the UK.
Commenting on the findings, CEO of Investing Reviews, Simon Jones said:
“There are endless debates to be had regarding the UK retirement age and the state of pensions, especially considering the recent rise in retirement age in France and the backlash that received. These responses offer a fascinating insight into the attitudes that the British public hold towards pensions and retirement ages, particularly the sentiment that it is now harder to retire comfortably than ever before. It will be interesting to see if factors such as the backlash in France to the rise in the retirement age and the increasing difficulty of the cost-of-living crisis have any effect on these sentiments in the future.”
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.
