24th July 2013
A worrying 3 in 10 of those aged over 55 have no pension plans in place according to pension firm Aegon. A further one in four have no idea what sort of income they will need when they do retire according to a survey of nearly 1,200 people. Two thirds of those surveyed also say they had no back-up plan in place to provide an income should they be unable to work before they retire.
The pension gender gap is also still significant across the whole working population with 40% of women having no active plans compared with 30% of men. The biggest provision shortage is in Wales and the South West of England, where 46% and 42.9% of respondents respectively have no personal or workplace pension. However the survey shows that younger respondents, aged 25-34, are showing some signs that they’re beginning to take the right steps to control their future.
Duncan Jarrett, Managing Director of Retail and At Retirement at Aegon UK, said: “Some of our findings are alarming to say the least with worrying levels of confusion and apathy.”
The firm has issued a checklist of dos and don’t for those worried about their retirement plans. Now this is a pension firm of course so some of this plays to its agenda. It wants you to invest with them and put more aside which helps them ‘gather assets’ in the pension and fund industry parlance. Yet by and large it appears to make sense. (especially in the East of England and Wales especially.
Dos: Stop and think about your plans for retirement – when you hope to stop working and what you plan to live on
Get an idea of what income you might get from the state and any private or workplace pension plans you may already have
If you’re in a scheme, keep contributing and consider regular increases
Make sure you’re benefitting from any contributions your employer will make. This will change under auto enrolment
If you don’t have a private pension plan, start as soon as you can
Consider seeking financial advice – whether it’s to get you started or to review if you’re on track
Assume your State Pension will be enough to live on comfortably
Assume you’ll be able to keep working indefinitely to pay the bills
Turn down membership of a workplace pension
Put off until tomorrow – the sooner you start the better
Assume auto enrolment minimum contributions are enough to meet your aspirations