Pension warning as ‘burdened’ Britons urged to calculate when they can afford to retire
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Pension planning is particularly important for those who are coming ever closer to the age where they may be able to retire. By thinking ahead, it is more likely Britons will be able to achieve specific retirement goals and have enough to see them through their later years. But new research has revealed many people are not being proactive on this matter, and have failed to calculate a date at which they can realistically retire.
Analysis undertaken by Aviva showed 53 percent of people who are in their mid-life have never done this calculation before.
This is despite the financial challenges faced by many people once reaching this age category.
In addition, three in five of those asked said they have never requested a free state pension forecast.
The survey asked over 3,000 UK consumers about their pension and retirement habits.
People aged between 45 and 64-years-old are considered to be in their ‘mid-life’ phase.
Failing to think about, and indeed plan towards, retirement can have disastrous consequences later down the line.
This is because building up pension savings, and understanding pension income as early as possible can be beneficial in securing a comfortable retirement.
The later people choose to start this journey, the more legwork and effort they will be required to put in to make sure they have enough.
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And without an ample income for retirement, Britons will either be forced to drastically cut back on later life goals or continue work for longer than they hoped.
Alistair McQueen, Head of Savings and Retirement at Aviva, commented on the matter.
He said: “Much of the debate surrounding COVID-19 has focused on the needs of the youngest and oldest in society and there’s a risk that we overlook the millions in between.
“Before COVID-19 struck, 45-60 was the fastest-growing age group of workers in the UK – bringing huge experience, skill and potential to the labour market.
“However, this age group is also the most likely to be overburdened with wealth, work and wellbeing concerns.
“Those in mid-life are a resilient age group, juggling a fuller working life, planning for retirement and contemplating the health implications that come with living longer.”
For those who are looking to understand their state pension entitlement, there is a certain action which can be taken.
Checking a state pension forecast is often key to understanding retirement income.
The service, accessible through the government’s website, enables Britons to find out how much state pension they could get and when.
It also provides details on how to increase this sum if at all possible.
By requesting a state pension forecast from the government, people can see if there are any gaps in their National Insurance record.
And they can then take the necessary steps to remedy this to ensure they have enough for their retirement.
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