Three quarters of Brits feel stressed about retirement plans
Those aged 25 to 34 felt the most under-pressure, according to the survey of 2,001 people across Britain conducted in October by Censuswide on behalf of Aviva.
With the exception of the over-55s, people in most age groups said they felt stressed about knowing how early they needed to start saving for retirement (49%) and then whether they were paying enough into their pension fund (59%).
An average across all groups found that half of respondents wondered whether they should have more than one pension.
Asking for help with pensions
In terms of seeking advice, 28% said they sought guidance from family members and friends: that figure rose to 48% in the 16–24 age group. Another 23% said they got help through their jobs. Just 18% said they had consulted a financial adviser.
Alistair McQueen, head of savings and retirement at Aviva, said: “It’s only natural, in a world where most people are worried about things that are beyond your control – the rising cost of living, increasing inflation, and interest rates that haven’t been seen for years – that you may also feel out of depth when it comes to things like pensions and later life preparations.
“However, with a little planning, and simple rules of thumb, you can easily feel more in control of your savings and know if you are on track for the lifestyle you want in your retirement.”
How to shrink the stress
Aviva offered tips for how to gain more control over your cash when you retire.
If it’s not already too late, aim to start saving at least 40 years before you want to stop working. Try to earmark at least 12.5% of your monthly income towards your pension savings every month and aim to end up with an amount of at least 10 times your salary by the time you retire.
Set aside some time to research options before deciding where to invest for retirement and check out the free government-sponsored MoneyHelper website for more advice.
Another tip: Use government tax relief to turn every £8 you save into a value of £10.
Remember, Aviva said, that every employer in the UK is required to provide eligible employees with a workplace pension and to contribute to it.
It’s also wise to keep an eye on your pension pot over the years to make sure you are still on target. Aviva said saving for your retirement should not be a “set and forget” activity.
Finding “lost” pensions
You might also have money coming to you that you weren’t aware of. Aviva said there are close to 3m “lost “pensions in the UK where providers and/or customers were no longer in contact. That’s £26.6bn, or £9,470 per person, going unclaimed. To see if you are missing out, check with the Pension Tracing Service.