You are here: Home - Retirement - Retirement planning - News -

Brits over-reliant on property and inheritance for retirement

0
Written by: Paloma Kubiak
10/05/2017
Too many people are relying on a combination of house price inflation and inheritance windfalls to support them in retirement, advisers warn.

A study by Prudential revealed that 51% of financial advisers said consumers are relying too much on rises in house prices to create wealth, while 48% warn savers are relying on inheritance for retirement planning.

As such, advisers believe savers are unrealistic about the income they will need in retirement as 64% of those questioned said clients underestimate how much they will need with 54% underestimating how long they will live in retirement.

Two thirds (66%) said their biggest concern remains the risk of people running out of money.

Nearly two-thirds of advisers (62%) said that failing to understand the implications of drawing down funds during a stock market downturn is one of the biggest barriers to consumers achieving financial security in retirement.

Vince Smith-Hughes, retirement expert at Prudential, said: “Pension freedoms have highlighted the need for retirement planning and advisers welcome the impact of the reforms in encouraging many savers to take pensions more seriously.

“But the continuing reliance on house price inflation and inheritance highlights that there needs to be shift in attitudes, with savers still unrealistic about the income they will need in retirement and how long they will live.

“Consumers often do not understand how much they should draw from their pensions and how drawdown during a downturn can reduce the size of their funds. This underlines the role that advisers can provide by helping many retirees secure a retirement income that lasts for the rest of their lives.”

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

Great expectations: Budget 2017

Who would be Philip Hammond? Next week he confronts a populace weary of austerity, hoping he can re-set the ga...

Shhhh….‘niche’ lenders offer mortgages up to 6 times borrowers’ income

Some smaller lenders have quietly increased income multiples used to calculate the maximum mortgage they can o...

Revealed: the fastest and slowest energy companies to answer your calls

One energy company picked up a customer call in just 10 seconds while one supplier took its time, keeping a re...

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:
2241490-water-frozen-faucet
Homeowners spend £850 on water damage caused by neighbours

Each year people spend a combined total of £707m repairing damage caused by water leaking into their home from a...

Close