You are here: Home - Retirement -

15.7m Brits lack adequate pension plans

0
Written by:
08/08/2012
Nearly half of Brits don't expect to use a pension to fund their retirement, according to a report by Barings Asset Management.

According to the survey of 1,567 workers, 44% of people aged over 18 will not choose a pension as the way to fund their retirement.

This equates to 15.7m in the country as a whole, which Barings say highlights ‘a lack of effective pension planning by a significant number of UK adults.’

Marino Valensise, chief investment officer at Barings, commented: “It is very surprising to see just how varied retirement funding sources have become for many people in the UK.

“While diversification is crucial to best-practice asset management, the suitability of some of these sources can be questioned, such as a reliance on inheritance. 

“Overall, the most challenging finding is that nearly half of the adult UK population admit to not having a formal pension at all.”

The research shows that many people rely on property, cash and in some cases inheritance to fund their retirement.

The number of people who expect that cash will form part of their retirement planning increased from 26% in the last survey in 2011 to 29% this time.

The number that selected property as forming part of their retirement fund also increased two percentage points to 29%.

Marino continues: “It is astounding that over one in ten people have focused all of their retirement planning on property. This suggests poor planning in terms of asset allocation, and a poor understanding of the risks involved, by large numbers of people in the UK.

“Assets such as cash and property, and instruments such as ISAs and investment trusts, can play an active role in retirement planning if managed correctly.

“For those people that have put aside assets for retirement, it is critical to make sure that these are allocated effectively and efficiently, properly adjusted for risk and with a clear understanding of the timescale involved.”

The research also highlights that 6m people are relying on inheritance to plan their pensions. Barings say that the expectation of receiving inheritance is more acute in upper and middle classes.

However Barings highlight that with the average UK inheritance estimated at around £45,000 per person, many people may be overestimating the role inherited assets may play in helping fund a retirement.

The study also found that one in four, 8.8m people, admit they simply don’t know how they will fund their retirement.

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Insurance Experts: Are you fully insured? Click here to get a quote.

For a free quote or to speak with an insurance expert call 0800 1218744

Tesco expected to post significant write-offs

Tesco is predicted to unveil the biggest loss in its 100-year history, according to analysts.
Tesco expected to post significant write-offs

Woodford’s new income fund drops out of top traded list

Star manager Neil Woodford’s Income Focus fund has dropped out of a platform’s top traded list, just five mont...
Woodford’s new income fund drops out of top traded list

Why selling on eBay just got more expensive

Thousands of people selling goods on eBay will see the cost of using the site increase. Here are the best alte...
Why selling on eBay just got more expensive

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

Tesco expected to post significant write-offs

Tesco is predicted to unveil the biggest loss in its 100-year history, according to analysts.

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2197463-choices11
Rate war will spark remortgage wave, says John Charcol

The proportion of borrowers remortgaging increased to four in ten last month, which could signal the start of a rush...

Close