A lot of people haven't even considered their pension funds
Large numbers of Britons face an uncertain future, particularly when it comes to their retirement.
That’s according to the fourth annual Financial Planning Survey, commissioned by the Institute of Financial Planning (IFP) in association with NS&I (National Savings and Investments) for UK Financial Planning Week which takes place this week.
Financial Planning Week is the national campaign organised by the IFP to raise awareness amongst the general public of the importance of financial planning.
The campaign also aims to encourage people to take action to improve their financial “fitness” and help them achieve the life they want. It also helps them to find quality professional Financial Planning help should they require it.
The survey, which was conducted by YouGov, questioned over 2,000 people across the UK, discovered that retirement plans for many Brits now hang in the balance as they struggle to pay down debt while worrying about their financial future.
· Only 19 per cent believe that they are saving enough for their future needs
· Almost half of Brits are not confident that they’ve saved enough to live comfortably when they retire. Women are particularly at risk with the majority falling into this category.
· 14 per cent have never made any pension contributions, and a further 31 per cent are not currently contributing to a pension plan of any sort, however, they have contributed in the past.
· Two thirds of women and over half of men say they worry about money either always or most of the time.
· Three quarters of respondents believe that they would be happier if they had more money
Nick Cann, CEO of IFP comments: “These findings present a worrying picture for so many people who are facing an uncertain future yet not taking appropriate steps to improve their situation.
"There seems to be awareness but no link to action. Financial Planners can help but the challenge is to ensure a greater engagement with the consumer so that they have confidence in the route that they are taking."
Looking ahead to what age the panellists think they will be able to afford to retire, one in ten think they will “never” be able to, including a worrying 12 per cent of over 55s.
Despite concerns over their future standard of living in retirement, many people are not planning to put money into pension plans to try to improve their position, or may not even be aware that they need to. Just 41 per cent say they would consider making additional contributions into pension plans to avoid delaying their retirement due to the planned increases in the state retirement age.
John Prout, Retail Customer Director at NS&I, comments: “Financial Planning Week highlights the importance for all of us to properly plan our finances, all the more so when money is tight for many people.
"Reviewing our finances, either for the short or long-term, can take many forms, beginning at home by seeking advice from family role models, by contacting organisations such as the Money Advice Service or through paid professional advice. The key is to encourage everybody to plan their finances and to really demonstrate the benefits of doing so, for example in saving money through switching their utility provider.”