Pensions: Half of us ‘not confident’ about retirement plans

3rd December 2010

Out of the 1,000 people surveyed by independent financial research company Defaqto , 44% admitted they were not confident that their needs would be met in retirement.

Defaqto's Matthew Ward says: "It is clear that people's lack of confidence in their retirement prospects is increasing.  This is unsurprising given the current economic climate and financial uncertainty that we are all faced with. 

"It is interesting and concerning that a significant number of people expect to rely on the state to provide their income in retirement."

The survey echoes the findings of a YouGov poll carried out for Financial Planning Week that reveals that only 22% of people feel clear how much they need to save, and for how long, in order to maintain a desirable standard of living in retirement.

But, Martin Bamford , managing director of chartered financial planning firm, Informed Choice says he is not surprised by the findings.

"It is little surprise that more than half of respondents don't know how much they need to save for their retirement. While this is one of the most important numbers to know from a financial planning perspective, it is a complete mystery to so many people."

Age is clearly a factor in the retirement planning process, with a massive 72% of those aged 18 to 24 and 71% of 25 to 34-year-olds saying they have no idea what steps they need to take now for their retirement.

Nick Cann, chief executive of the Institute of Financial Planning which co-hosted the YouGov poll, says it paints a worrying picture of the future.

"Given the demographics that we are presented with and the growing emphasis on providing for our own financial future, proper financial planning should be a given to help people secure a comfortable retirement."

There is a handy pensions checker in the ‘tips and tools' section on the Financial Planning Week website   to help you work out the sum you need to save in order to have a comfortable retirement.

But as Cann warns: "Be prepared for a shock!"

 

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