October 2018
Featured in this insight: Financial services
Third of people do not have a pension: A third of people in the UK do not have a pension in place to financially support them in retirement.
The survey by Finder.com, a comparison website for personal finances revealed 35% said they are without a pension. A third (36%) do not know how much they have in their pension pot and 43% are not clear on how much they need to save.
The survey polled 2,000 people and revealed a real lack of knowledge around pensions and how much one should amount to when it is time to retire.
Among 54–74 year-olds 48% admitted they were in the dark about how much they actually needed for their retirement.
The survey revealed 21% of those polled thought £50,000 would be enough for their retirement – which is considerably less than the minimum recommended figure of £260,000.
For millennials, 32% think that £50,000 will be enough, compared to a quarter of Gen X respondents (25%) and 19% of baby boomers.
When asked what they believe they will need to save for a comfortable retirement, millennials said £126,000, although 80% do not believe they will meet their predicted pension amount. Gen Xers predicted £188,000 although 75% do’ feel they will reach their target and Baby Boomers predict they’ll need £212,000 with only 59% thinking they’ll meet the target before retirement. This says Finder, is ‘even more concerning’ when considering the estimated amounts are considerably below the recommended amount of £260,000 – £445,000.
The findings also show that despite auto-enrolment into workplace pensions, a third (35%) of respondents still are without a pension.
Jon Ostler, CEO at Finder said: “It’s often not a priority at a younger age, but the cost of retirement for millennials is something to be prepared for, especially as a higher percentage of this generation are expected to rent in their retirement.
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