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 retireResearch [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 incomeThe 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 workingLess 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 retirementThere 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 investmentThe 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 ZientekIndependent Financial AdviserCert PFS, CeMAPScottsdale Consulting LtdTel: 0845 504 6444Mob: 07929 446 735Email: m.zientek@sc-ifa.co.ukFollow me on Twitter/LondonAdvisorwww.ScottsdaleConsulting.co.ukIndependent Financial Advisers UK | Financial Advisor UK| Independent Financial Advisor London