As the New Year dawns, many individuals are setting resolutions centred around health and well-being.
However, Phoenix Group’s longevity think tank, Phoenix Insights, advocates not overlooking financial goals, especially long-term objectives that often take a backseat amid immediate financial priorities.
Highlighting the significance of this, the think tank encourages adults in mid-life, aged 45-54, to prioritise retirement planning as part of their New Year’s resolutions.
Research conducted by Phoenix Insights reveals that midlifers find visualising their retirement as the top motivator for maintaining savings discipline, with 30 percent emphasising the importance of envisioning their post-work life.
The study sheds light on the key ways midlifers stay motivated to save for retirement, including regularly reviewing expenses (26%), planning with a spouse or long-term partner (22%), setting clear savings goals (21%), and discussing plans with friends and family (11%).
“Never too late”
Despite challenges posed by rising living costs and interest rates, a resounding 72 percent of respondents in this age group believe it’s “never too late” to commence retirement saving. Pressures from increasing prices have impacted the saving abilities of nearly two-thirds (63%) of midlifers, while higher mortgage costs have affected a further fifth (20%).
Patrick Thomson, Head of Research and Analysis at Phoenix Insights, emphasizes the importance of recognising the long-term financial picture. He notes that while saving for retirement may have been overshadowed by immediate financial concerns, the New Year serves as a timely reminder to assess savings and bridge any gaps. Thomson highlights the unique challenges facing those in mid-life, such as lower rates of final salary pensions and missing out on a lifetime of saving under auto enrolment.
Think about finances
Thomson adds, “Just thinking about finances can often be the hardest part of retirement planning. It’s never too late to think about long-term saving, but the sooner this process is kick-started, the better.”
As individuals embark on their New Year resolutions, Phoenix Insights encourages midlifers to include retirement planning in their financial goals, offering a proactive approach to secure a comfortable 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 the 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.