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Nearly one in four workers ‘think retirement will be a financial struggle’

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Older workers are more downbeat about their chances of having enough cash to enjoy themselves in pension than younger employees, the survey has found.

Only one in 7 people aged 56 in order to 65 think they will have sufficient cash to really enjoy their particular retirement, as do 12% associated with 46 to 55-year-olds, Aviva found.

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This particular compares with nearly 1 / 4 of 22 to 30-year-olds and 19% of thirty-one to 45-year-olds who are assured they will have enough put simply by to really enjoy their old age.

Across all ages, nearly a quarter of employees believe their retirement will probably be a financial struggle.

Automatic enrolment has brought huge numbers of people into workplace pension conserving, although there are concerns that individuals may not be putting by sufficient for a comfortable retirement.

In April 2019, minimum contributions will increase to 8% of income, including top ups through employers and the Government, even though Aviva said just preserving the minimum is not likely to give people the pension container they will need for a comfortable pension.

Travelling, going after hobbies and giving cash to children and grandchildren will be the top priorities for individuals when they do retire, the particular survey of more than 2, 500 22 to 65-year-olds throughout the UK found.

Alistair McQueen, head associated with savings and retirement on Aviva, said: “Retirement needs to be something we all look forward to, yet we should be aiming to thrive, not simply survive. ”

A Department for Function and Pensions spokesman stated: “Average pensioner incomes reach their highest levels considering that records began thanks to the Government’s commitment to the triple locking mechanism and wider reforms.

“Automatic enrolment straight into workplace schemes has increased the pensions prospects associated with almost 10 million individuals so far, setting them in relation to a financially secure pension.

“We understand there is more to do when it comes to increasing contribution rates, and also a further rise is due within April. ”

Aviva has 3 general tips for being monetarily prepared for retirement:
1 . Try to start saving at least 4 decades before your target pension date.

second . Try to save at least twelve. 5% of your monthly income towards your retirement, including efforts from the employee, employer plus government.

three or more. Aim to have saved a minimum of 10 times your yearly salary by the time you achieve retirement age.

Read more:
Nearly one in 4 workers ‘think retirement might be a financial struggle’

https://www.bmmagazine.co.uk

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