1st October 2015
Would-be retirees are feeling the financial pressure as new research shows that just 53% of over 65s believe they have sufficient money saved to meet their needs.
The analysis from The Share Centre also found that more than half, at 54%, of over 65s want to continue working beyond the traditional retirement age.
Worryingly, those surveyed believe they need approximately £230,000 in savings to provide a comfortable retirement – hence why many respondents are set to continue working.
The broker surveyed 1,500 personal investors and asked them specifically what they want to be doing in retirement.
Whilst the highest percentage of respondents wanted to carry on working, unsurprisingly past times such as gardening, charity work and travelling came in second, third and fourth places respectively. Interestingly, the biggest financial regret of those surveyed, as cited by 38% of people, was that they wish they had saved more when they were younger.
Richard Stone, chief executive of The Share Centre said: “In April 2015 pension legislation changes opened up pensions to allow investors to control their funds using vehicles such as personal ISAs, in place of the traditional pension pot. At The Share Centre, we have seen a 16% increase in those aged 55 and over holding ISA accounts, demonstrating that investors are exploring different savings options and taking an active approach.”
Notably the value of these accounts has increased by 27% which additionally supports the trend of exploration Stone has witnessed since 6 April when the changes were bought in.
Stone added: “To retire comfortably at 65 with an income of £20,000 per year, pensioners will need to have put aside at least £400,000 and those within our sample were almost halfway off of this benchmark. We were surprised to see a lack of confidence within our sample and feel that research such as this will encourage individuals to start investing, in cash or stocks and shares, earlier to support themselves in later life.