Retirement has previously been seen as a time when pensioners can put their feet up, relax and enjoy the spare time they deserve after a life of hard work. But it seems that many are not confident that they will have the financial backing to be able to fully appreciate this time of their lives.
In new research carried out by AXA Wealth, figures report that 63% of people are generally worried about having a lack of money in retirement. Many people have certain ambitions for when they retire and 38% are nervous about having a shortage of funds to achieve them, while a further 29% are really worried about not having enough money to cover essentials such as food and heating.
Becoming financially reliant on others is a worry of 25% of those questioned, while 23% are concerned about the returns they will get on their savings and 11% worry about the stability of their investments. It doesn't appear that many of those approaching retirement are any more confident about their financial situation, with only 7% of those in their 50s having no financial worries at all about this stage of their lives.
Nick Elphick, of AXA Wealth, said:
"Retirement should be a time of optimism and enjoyment, yet we are seeing that most people are unprepared and fearful of what may happen to them. At the start of this year we warned that we were approaching the age of the 'golden boomerang' generation as babyboomers returned to their children for financial support. Financial advice is key if we are to avoid this becoming a reality.
"Ultimately, none of us want to be dependent on others in retirement, but to achieve this people need to be supported in putting in place realistic and achievable steps to build the retirement pot they need. With greater flexibility around retirement options expected next year, advisers have a role to play in helping to manage peoples' finances so they have the level of income they want. We have witnessed an entire generation sleepwalking into financial difficulties in later years and quite simply we, as an industry, cannot let this continue."
Preparation is the key and it seems there is a lack of this with 30% admitting to not knowing how much money they will need to live on in retirement. Getting the right independent advice, however, could be the solution and could make all the difference to your financial planning for retirement.
Whatever age you are, there are changes you can make to ensure you head towards a happy retirement. If you are young, then it might seem a long way off, but if you start saving early you will amass a decent pension pot which should see you right in later life. But it's never too late to make those changes and start saving a little more, it will all make a difference later on. And if you are approaching retirement, then making the right decisions on how you draw on your savings is imperative. So do your research, get the right advice if needed and you could be enjoying the happy retirement you deserve.
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