Only a quarter of Britons believe they will be better off than their parents when they retire

Only a quarter of Britons believe they will be better off than their parents when they retire

Research [1] from Schroders reveals that just 26 per cent (10.3 million) of Britons believe they will be better off than their parents' generation when they retire. The findings reveal that 44 per cent (17.2 million) of people believe they will be worse off in retirement than their parents, fostering feelings of jealousy of a perceived 'golden generation' of pensioners who have benefited from significant gains in the value of their property and generous final salary pensions.

Desperately trying to boost retirement income
The biggest fear that Britons (79 per cent) have about retirement is having too low an income to fund their desired standard of living or inflation eroding the value of their savings, while 1 in 20 (5 per cent) cite their biggest fear as being forced to sell their home. In response to these fears, Britons with pensions are desperately trying to boost their retirement income by increasing their monthly contributions. Over one quarter (27 per cent) of private pension holders have increased their contributions in the last 12 months. Of those willing to disclose the additional amount they were investing, the average monthly increase in contributions was £84.

Sufficient Reserves of income to stop working
Less than a quarter (22 per cent) of Britons are confident they will have sufficient reserves of income to stop working, particularly given the current level of economic uncertainly. As a consequence, one in five (21 per cent) people are planning to extend their anticipated retirement date. Of those planning to extend their retirement, they anticipate working on average another six and a half years, which would see millions of Britons working well into their seventies.

Invest more to have a sufficient income to fund retirement
There is a fear among many in employment that their standard of living and income will drop dramatically in retirement. With the closure of final salary schemes, reduced annuity rates and continued inflationary pressures, many Britons feel they will be worse off in retirement than their parents. While the 'golden age' of pensioners who benefited from rapid house price inflation and generous pension schemes is well behind us, millions of people recognise that they will need to work longer and invest more if they are to have sufficient incomes to fund their retirement.

[1] On 16-17 December 2011, Vision Critical conducted an online survey among 2,003 randomly selected British adults who are Springboard UK panellists. The margin of error, which measures sampling variability, is +/- 2.2 per cent. The results have been statistically weighted according to the most current education, age, gender and regional data to ensure samples representative of the entire adult population of the United Kingdom. Discrepancies in or between totals are due to rounding.

No matter what your retirement goals are and how much you wish to invest, we can work with you to develop the best solutions for you. Don't delay, please contact us for a review of your particular situation.

The value of your investment and the income from it can go down as well as up and you may not get back the original amount invested. Past performance is not a guide to future performance. Please contact us for further information or if you are in any doubt as to the suitability of an investment.

HM Revenue & Customs practice and the law relating to taxation are complex and subject to individual circumstances and charges which cannot be foreseen. The value of your investment and the income from it can go down as well as up and you may not get back a significant proportion of your investment. Past performance is not an indication of future performance. Please contact us for further information or if you are in any doubt as to the suitability of an investment

The articles featured in this publication are for your general information and use only and are not intended to address your particular requirements. They should not be relied upon in their entirety. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. Will writing, buy-to-let mortgages, some forms of tax and estate planning are not regulated by the Financial Services Authority.



Marcin Zientek
Independent Financial Adviser
Cert PFS, CeMAP
Scottsdale Consulting Ltd
Tel: 0845 504 6444
Mob: 07929 446 735
Email: m.zientek@sc-ifa.co.uk
Follow me on Twitter/LondonAdvisor
www.ScottsdaleConsulting.co.uk
Independent Financial Advisers UK | Financial Advisor UK| Independent Financial Advisor London

Fred Rutgers

fredrutgers-186363

Only a quarter of Britons believe they will be better off than t

Marcin, I fear even fewer Dutch think they will be better off. We have the blessings of the Euro instead! ;-( Let's get real money again! Fred Ruters

0 comments

Angus Whitton

anguswhitton-88567

Only a quarter of Britons believe they will be better off than t

I think I spot a flaw.... It's all about money - the following is a little generalised but is I think a reasonable view. No mention of 20 years free/subsidised education, incredible advances in free healthcare, free handouts in cash, accommodation, and childcare etc from parents, and of course, health and safety advances combined with better nutrition making them fit and healthy enough to work through to 70 or beyond.. re money, The only 'standard' pension scheme I would now recommend is final salary, and if that is not available - look for a selection of alternative investments whereby (they) the owner has control, and understands the risk and conditions; the standard bank and insurance company products are unlikely to produce anything worthwhile. Angus

1 comments

Julia McDaid

juliamcdaid-47153

Only a quarter of Britons believe they will be better off than t

How many are sacrificing lifestyle now for a perceived better lifestyle when they retire?

0 comments

Robert Craven

robert-craven-22343

Only a quarter of Britons believe they will be better off than t

I expect your stats are not far off the mark... RC

0 comments