Investing Reviews, an investment comparison site, has conducted a survey shedding light on the sentiment of Brits regarding pensions and retirement.
The findings show that 70 percent of respondents believe it is currently more challenging to retire comfortably in the UK than ever before.
Also, 78 percent of participants feel that the retirement age in the country should be lowered. Interestingly, 42 percent of those surveyed expressed a preference for leaving the UK and retiring abroad.
The survey aimed to understand the opinions and attitudes of over 2,000 respondents towards retirement, pensions, and investments. Notably, the sentiment around retirement ages in the UK aligns closely with the ongoing tensions in France, where the retirement age is being raised from 62 to 64.
In the survey, 68.71 percent of participants agreed that the UK retirement age, currently set at 66, should be decreased. This sentiment is coupled with 71.16 percent of respondents believing that retiring in the UK has become more challenging than ever.
Are Brits expecting a comfortable retirement?
However, the survey conducted by Investing Reviews reveals that achieving a comfortable retirement may be easier said than done. A significant majority of respondents (62.60%) stated that their pension alone would not suffice for a comfortable retirement, emphasising the need for additional investments. This sentiment may stem from the fact that over half of the participants (55.82%) feel limited in making desired pension contributions.
Employer contributions also play a role in retirement considerations, with 42.66 percent of respondents willing to switch careers if it meant higher employer pension contributions. An earlier study by Investing Reviews analysing official government data found 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 sector with the lowest percentage is “wholesale and retail trade (including motor vehicles and motorcycle repair)” at just 1.3 percent.
Do Brits know what is in their pension?
Another interesting finding from the survey is that over a third of respondents (34.93%) are uncertain about the exact amount of money in their pension, and a similar proportion doubt their ability to retire comfortably in the UK.
The desire to retire outside the UK was reflected in the respondents’ answers, with 42.66 percent agreeing with the statement, raising questions about the impact of increasing inflation and the cost of living on retirees who choose to remain in the country.
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.
