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Downturn hitting retirement and festive plans

Downturn hitting retirement and festive plans

Category: Retirement

Updated: 23/11/2011
First Published: 23/11/2011

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Retirement plans for many Brits currently hang in the balance as they struggle to pay down debt while worrying about their financial future, a new poll has revealed.

According to a YouGov survey, commissioned by the Institute of Financial Planning in association with NS&I, only one in five people believe they are saving enough for their future.

Indeed, almost half of those questioned admitted that they have probably not saved enough to live comfortably when they retire.

But even more worryingly, one in ten fear the inadequacy of their retirement plans means they will never be able to retire.

Yet despite the growing realisation that a comfortable retirement is an increasingly distant dream, many people are not taking any action to remedy the situation.

In fact, 14% of those surveyed admitted they had never contributed to a pension, a statistic that goes a long way to explaining why some people think they might never be able to give up work.

At the same time, separate research from Legal & General suggests that the economic downturn appears to not only be ruining many potential savers' plans, but their Christmas as well.

According to the insurer's latest MoneyMood survey, around a third of households will spend less on Christmas this year, while half intend not to spend any more than last year.

As to how people plan to fund their present buying, only one in five intend to use a credit card, compared to one in three who were prepared to use their plastic last year.

"Perhaps this reflects a more prudent attitude to credit card debt in these straightened times," said Mark Gregory, Legal & General executive director of savings.

"Last month we reported that a million households are worse off now than they were just one year ago.

"So it comes as perhaps no surprise that in the current economic climate eight out of 10 homes say they're planning to curb spending on presents compared to last year."

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