New research has found many people in the UK haven’t even started thinking about saving for when they stop working.
The research conducted by MoneySuperMarket has found that most people have no idea how much they need to save to live a comfortable life in the future and worryingly nearly half are not considering buying life insurance to protect their dependants from debt and provide for their financial needs.
The research, carried out between January and February last year, was based on 1,000 respondents. It used an interactive tool which people could use to see how prepared they are compared to their demographic, with results tailored by the user’s age and gender.
MoneySuperMarket said the average Brit needs £370,000 to retire, based on £26,000 a year to live off. However, the survey results revealed that: Millennials, aged 18 to 34, underestimate this figure by £213,400; Over a quarter (26 percent) of respondents of all ages don’t have a pension; 34 percent of millennials are not enrolled in a pension scheme at all.
The research also found there is a pension gender gap in the UK, with women found to both be less likely than men to have a pension, and also have a more unclear understanding of how much their pension was actually valued at.
Whilst millennials were shown to be the least knowledgeable, there was also found to be a high lack of knowledge across all age groups – including those aged over 55.
The research found over 55s underestimated the amount needed for retirement by more than £145,000, and 20 percent of over 55s are not enrolled in a pension scheme.
A MoneySuperMarket spokesperson said,
Brits face all sorts of calls on their money and it’s easy to see why the cost of everyday living can trump longer-term objectives such as saving for retirement – especially if you’re not fully aware of how much you’ll need in retirement. But anyone who can get into the savings habit gives themselves a better chance of building up the sort of pension kitty that’s needed to fund a comfortable lifestyle once they stop work.
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Aphrodite is a creative writer and editor specialising in publishing and communications. She is passionate about undertaking projects in diverse sectors. She has written and edited copy for media as varied as social enterprise, art, fashion and education. She is at her most happy owning a project from its very conception, focusing on the client and project research in the first instance, and working closely with CEOs and Directors throughout the consultation process. Much of her work has focused on rebranding; messaging and tone of voice is one of her expertise, as is a distinctively unique writing style in my most of her creative projects. Her work is always driven by the versatility of language to galvanise image and to change perception, as it is by inspiring and being inspired by the wondrous diversity of people with whom paths she crosses cross!
Aphrodite has had a variety of high profile industry clients as a freelancer, and previously worked for a number of years as an Editor and Journalist for Prospects.ac.uk.
Aphrodite is also a professional painter.
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