Millions of older people are concerned they don’t have an adequate pension or cash savings to fund their later years.
More than one million people over 45 have zero cash savings, according to recent research conducted by not-for-profit organisation Fair4All Finance, which could put them on shaky ground when it comes to retirement.
The research, based on an online survey of just over 3000 financially vulnerable people, found that the number of over-45s with no savings has increased from 23% to 37% over the past two years. Additional findings show that 58% of people over the age of 45 currently have less than £1,000 in savings and more than a quarter (26%) are relying on their savings as their primary income source.
According to research conducted earlier in the year by Investec Wealth & Investment, 48% of people are concerned their pension savings won’t be enough to last them through retirement. In comparison, 56% say they know they haven’t saved enough for retirement.
Planning for retirement
If you are worried about your retirement pot, acting now is important. On the plus side, it’s good to consider how you will cope financially during your retirement, as it may prompt you to seek advice and put a plan in place for your future security.
If you’re still working and you think your pension might be behind where you want it to be, there are ways you can boost it before you hit retirement age.
For example, it is a great idea to boost your contributions whenever possible or find out whether your employer offers a contribution-matching policy.
Tracing ‘lost’ pensions
It’s also important to find out if you have any ‘lost’ pensions that may have slipped your mind. According to a study from the Pensions Policy Institute, there is £31.1 billion lying in unclaimed or lost pension pots, with almost 3.3 million pots not currently claimed by their owners. If you think you may have a pension from a former employer but you’re not sure, it’s worth contacting them or using the government’s free pension tracing service.
Through our trusted partners, we can provide pension advice and financial planning support. If you’re worried about funds during retirement, one possible solution could be to consider releasing equity from your property, but it depends on your circumstances and it’s essential to seek expert advice. We offer various options for older borrowers and we’re always here to help if you would like a friendly chat with a member of our team. Feel free to contact us for more information.