Saving For Retirement

Saving For Retirement

March 27, 2023 3:03 pm Published by

Saving For Your Retirement

The Lost Coin Financial Planning Ltd recently conducted a survey and our studies showed that 75% of people don’t know how much they have actually accumulated in their pensions over the years, that’s 3 in every 4 people. What’s even worse is that 4 in 5, 79% of people ages between 55 and 64 couldn’t even put a figure anywhere near close to what they had saved in pensions. At the age of 55 to 64 this is the most important time to plan ahead for your retirement. You have worked hard all your life so you want to know you’re going to be financially stable. It’s worrying to know that most people don’t even know what they have saved.

Statistics show that 81% of women are less likely to know what they have saved than men coming In at 68%. There is more awareness of what people need to survive when they hit retirement age. Is estimated that the average woman will need £22.428, men coming in considerably higher at £32.617. Even if you do not know how much you have saved to date the salary or income revived makes a massive difference.

It’s always a good idea to save a little bit more when you can, especially pre retirement age, saving as little as 2% more over your career could lead to as much as £108.000 more in your retirement fund. Statically even a small contribution each month could raise the £ massively when retirement hits.

Saving For Retirement

Getting Your Retirement In Order

Given the responsibility people now have for their own pension savings, it is worrying that the majority cannot estimate their pot size – particularly those approaching or even in retirement now. “n order to plan your financial future, it’s vital to engage with your finances as early as possible.

The best place to start is by checking what you currently have in your pension, and what this could equate to in retirement, and there are tools and calculators that can help with this. From there, you can see whether your current funds will provide the type of retirement lifestyle you want and, if not, you can make changes to improve your situation, such as increasing regular contributions or paying in a lump sum. You may need to make lifestyle changes to accommodate this, such as cutting back on everyday spending, so it’s important to take a holistic view of your finances to see what’s possible in both the short and long term.

Recent studies also show how very little understanding of their finances people have when they are about to hit retirement. Only one in five people are confident they will have enough money to live comfortably when they retire whilst 1 in 3 people are not sure they will be able to and think they will need to rely on state pension to make up their income. Very few people have looked into seeking professional advice on their pension finances.

It’s no surprise that many pensions are looking to work beyond retirement. Adults aged 45-64 are expecting to retire at the age of 68 that’s 2 years older than the state retirement age of 66.

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