Money News

Britain’s future pensions face a bleak retirement

Tuesday 22 November, 2011

By Martin Fagan

As they struggle financially, 12% of over-55s feel they will “never be able to afford to retire”.

Large numbers of Brits face a bleak financial future, particularly when it comes to their retirement, according to a new survey.

The fourth annual Financial Planning Survey, commissioned by the Institute of Financial Planning (IFP) in association with NS&I (National Savings and Investments), discovered that retirement plans for many Brits now hang in the balance as they struggle to pay down debt while worrying about their financial future.

Almost half (47%) of Brits are not confident that they’ve saved enough to live comfortably when they retire. Women are particularly at risk with the majority (55%) falling into this category.

The survey also found that 14% have never made any pension contributions, and a further 31% are not currently contributing to a pension plan of any sort, even though they have contributed to one in the past.

Looking ahead to what age those surveyed think they will be able to afford to retire, one in ten (10%) think they will “never” be able to, including 12% of over-55s.

“These findings present a worrying picture for so many people who are facing an uncertain future yet not taking appropriate steps to improve their situation,” said Nick Cann, CEO of the IFP.

Other findings of the survey were that 30% of all Brits in work were not setting aside any of their income as savings, in either a pension or other investments. Of those saving, most felt confident putting their money into deposit accounts offered by building societies and banks (44% and 39% respectively).

Half of the respondents said they were not confident about investing in the UK stock market, with 54% expressing fears about investing in global markets.

The survey was conducted for UK Financial Planning Week, which takes place 21-27 November and is the national campaign organised by the IFP to raise awareness among the general public of the importance of financial planning.