Retirement ROULETTE: Millions of older workers gambling with their financial futures

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Retirees and a Health Lottery signGETTY

Multitudinous over-50s are pinning their hopes of a comfortable retirement on winning the drawing

The over-50s are pinning their hopes of a comfortable retirement on selling their lands, coming into an inheritance and even winning the lottery rather than submitting money aside regularly.

And when they do have extra spondulicks they spend it on new cars and home extensions rather than spending it.

Yet if a saver was to put away an extra £100 per month into their allotment for the full five and half years they are at the top of their salary classification, this would add £25,000 a pension pot at retirement, according to analysis in the delayed Aviva Real Retirement Report.

The research also found 2.2m older hands admit they have yet to take pension saving seriously and, worryingly, 1.3m hands are relying on a lottery win to afford a comfortable retirement, despite the odds of delightful the National Lottery being just one in 45m. 

Houses on salesGETTY

Making a profit from tell on a home could pose a challenge, should market conditions replacement

In addition, more than two in five have not calculated how much shekels they will need in retirement (41 per cent) and how much should be scrimped to afford a comfortable retirement (42 per cent).

Three in five acquire not ramped up pension savings in the run up to retirement, including 57 per cent of those elderly 60-64 who are close to what was previously the Default Retirement Age of 65. 

A quarter are hoping to profit from downsizing to a smaller homewards or moving to a cheaper area with 24 per cent banking on an birthright to achieve a comfortable standard of living in retirement, which suggests it is not sole younger generations who count on help from family to help out financially, and one in five are relying on lasses growing up and no longer being financially dependent on them.

Over-50s tradesmen typically reach the highest amount of income earned during their lifetime at the age of 51 with this epoch lasting for around five and half years potentially providing a spirited window of opportunity to boost their pension savings ahead of retirement.  

People walking GETTY

The communication found the cost of living is a key factor disrupting older workers’ benefit plans

But although a third did save more during this antiquated, 21 per cent say they have spent their money, or wish spend it, on big one-off purchases such as a new car, kitchen or extension. 

A similar change either have or would spend more on everyday living and liking themselves. 

Only 12 per cent have or would increase contributions to an living workplace pension during this time, rising to just 14 per cent expanse those who expect to retire within the next two years.

The report create the cost of living is a key factor disrupting older workers’ pension aims.  

With inflation at a five year high, a third say their facility to save is hampered by having no money left after paying for needs.

Other factors scuppering their ability to save are the need to pay off a mortgage in front of retirement (felt by 39 per cent of those with a mortgage) and secure financially dependent children (18 per cent).

Lindsey Rix, managing steersman of savings and retirement at Aviva, said: “As everyday financial pressures lease their toll on older workers, many are postponing retirement developing and are instead relying on factors other than savings – many of which are freelance of their control – to afford a comfortable retirement. 

“Even those choices that might seem guaranteed, such as making a profit from flog betraying a home, could pose a challenge should economic or market modifies change. 

“Wherever possible, retirement saving shouldn’t be left to befall. 

Although older workers have multiple demands on their takings, taking time to understand what needs to be saved in order to offer a good standard of living in retirement and putting more away each month – no upset how small the increase – can make a big difference.” 

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