2014 Aegon Retirement Readiness Survey: many expect to work beyond retirement age
Today's survey findings from Aegon* reveal that the public have a low level of confidence in their ability to achieve a comfortable retirement and many expect to work beyond retirement age. This closely echoes recent research undertaken for Bestinvest that found 27% of people expect to have to work beyond retirement age. Our survey of 2,000 UK adults also asked respondents to estimate the savings necessary to achieve the UK average salary of £26,500 in retirement. The average figure was guessed at £335,000 whereas the real figure is £930,000 – a massive underestimation of the funding required.**
Changing perceptions of retirement mean that the arbitrary boundary of retiring at the state retirement age is disappearing. The good news is that we are all living longer, but that requires financing. There are only two ways to address this; working longer or saving considerably more. While for some continuing to work may be a positive lifestyle choice, for others this will simply be a financial necessity and more are waking up to this prospect. For those who want to enjoy a restful retirement, the only answer is to save and invest considerable sums during working life.
Pensions have been perceived negatively for years because they have been shrouded in complexity and have faced incessant meddling with the allowances by politicians. Yet pensions are vital and should not be ignored. The recent reforms announced in the Budget, which vastly improve the flexibility of pensions, provide an unprecedented opportunity to recalibrate public attitudes towards pensions savings and it is imperative that politicians of all parties recognise the need to allow these changes to bed in for several years without further tinkering.