UK savers gloomy about retirement prospects

| November 16, 2011
UK savers gloomy about retirement prospects

New figures from financial research company Defaqto reveal that UK savers are pessimistic about their pensions and many are failing to make adequate provision for their retirement.

Dafaqto reports that the proportion of savers who fear that their needs won’t be adequately met when they retire has grown 6 per cent to 44 per cent.

Just 11 per cent of those surveyed said they were confident that their pension would enable them to have a comfortable retirement compared with 16 per cent previously.

The survey also highlighted the failure of younger people to make adequate provision for their old age, with 35 per cent of the 25 to 34 age group, and just 9 per cent of those aged between 18 and 24, saying they had a pension in place.

Andy Leggett, Defaqcto’s Insight analyst for wealth management, said: “It is important for people to plan for their financial future to ensure that their and their dependents’ needs will be met.

“The later you leave it, the more of an uphill battle you face.”

The Prudential today revealed that many older couples are failing to plan for their joint retirement and in fact many of them are hiding savings from their partners.

New research by the financial services company reveals that 15 per cent of people over the age of 40 are hiding savings, either as a security measure or because they don’t trust their partner’s ability to make sensible financial decisions.

In total the Pru estimates that 4.5 million people aged over 40 have a total of £4.6 billion in savings accounts that their partners know nothing about.

The company warns that much of this money is in accounts offering a very low rate of interest and suggests that savings should be regularly reviewed to ensure that they are attracting the best possible return.

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