You are here: Home - Saving & Banking - News -

Retirement finances remain a worry

0
Written by:
09/05/2008

People facing retirement are more concerned than ever about their financial security and income, according to LV=.

The report reveals deep concerns among the nation’s pre-retirement population about their overall financial situation and level of savings, and how their retirement years may be impacted.

One of the key findings is the rise of ‘FRED’ – 66% of the survey’s respondents say they are Facing Retirement Earnings Doubts, and in the last year have become increasingly worried about their financial security in retirement.

This ‘anxious majority’ equates to six and a half million people. People facing retirement believe increasing utility bills and food prices will be the biggest threat to their financial security after they retire. Of those who are concerned about the future, more than three-quarters highlight these spiralling costs as their biggest financial concern.

With the cost of gas, electricity and water having risen by an average of 52% since 2003, and at least six electricity and gas suppliers increasing prices during the first four months of 2008 alone, this is seen as a very real threat to retirement income.

The report also reveals that people approaching retirement are aware that there is a significant gap between the income they will need to maintain their standard of living in retirement, and what they will actually have. Those surveyed said that on average they would need £20,100 a year in retirement, but believed they would actually have an income of only £16,900 a year.

Mike Rogers, group chief executive of LV=, said: “The combined impact of the rising cost of living, fears of a recession, and widespread media coverage of the credit crunch, has created an anxious majority of people facing retirement who are very concerned about their financial future.

“Our advice to anyone approaching retirement is to seek professional financial advice to ensure you make the most of your finances when you retire. Young people shouldn’t ignore their own retirement needs, despite it being decades away. Saving just a little and often – as much as you can afford – is a step in the right direction.”

Tagged:

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

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

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

Money Tips of the Week

Read previous post:
Motorists not checking insurance small print

Thousands of UK motorists not reading the small print on their insurance policies are running a major risk of not...

Close