Fall in number of people aged 55 and older who are fully prepared for retirement
MGM Advantage calls for earlier retirement planning
Just five per cent (299,000) of non-retired British adults aged 55 and over feel ‘fully prepared' for retirement, according to the latest Retirement Nation Report1 from retirement specialist
MGM Advantage.
This is a dramatic drop from before the recession when, in 2008, 39 per cent felt fully prepared for the financial implications of retirement.
The retirement income specialist's annual survey also reveals that 1.2 million British adults (21 per cent) who are 55 and older and still working do not feel at all prepared for retirement. Almost half (46 per cent) of all adults say that they are ‘not at all prepared' for retirement.
Half of women (50 per cent) who have yet to retire do not feel at all prepared for retirement compared to 42 per cent of men.
Echoing the fact that so few people are properly prepared financially for retirement, only around a third of adults (31 per cent), or equivalent to 14.5 million people, have built up a savings pot. This increases to 39 per cent for those between 55 and 64 and 42 per cent for those aged 65 and over.
Just seven million people (15 per cent) have sought financial advice from a professional, while eight per cent have consulted their bank. Six per cent or - 2.7 million non-retired people - have sought retirement advice from their friends.
When people were asked this question last year, three per cent or 1.5 million people sought advice from their friends.
The report reveals that not only are people unprepared for retirement, but also many are expecting to work for longer to make ends meet.
Over a third (35 per cent) of people aged 65 and over still working expect to keep working until they are at least 71 years old, and 9 per cent of this age group plan to be working past their 80th birthday.
"It is hugely worrying that so many people nearing retirement are unprepared for the financial implications of this stage of their lives,” said Craig Fazzini-Jones, Director at
MGM Advantage.
“Part of the problem is that relatively few people seek professional advice before they retire, but it's crucial that people are extremely proactive in checking their finances at this time. This lack of financial planning means that more people will have to work longer to ensure that they have an adequate income in retirement.”
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