Everyone’s In Denial About Paying For Their Retirement

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Savers are not preparing enough for their retirement and confess that they don’t want to think about financing their later years, according to a survey.

Just over a quarter of people in the UK said they had yet to consider how they would pay for their retirement – and just under a third (31%) do not know how they will pay for care home or long-term care fees if they were ill.

The survey was conducted by NS&I which reveals a worrying scale of inaction.

Even though 34% of people believe they will end-up having to care for dependents or relatives in their own retirement, few – around 27% – are actually making financial plans to cope with that situation.

Most people believe that the age to start saving and planning for retirement is 37 – and just over half of working people in the UK worried about how they will manage financially.

Emotive and distressing

John Prout, the NS&I’s retail customer director, said: “Many people appear not to like thinking about growing older and of their needing long-term care one day.

“Retirement can be an emotive and distressing issue to discuss but with people now living into their eighties it is likely that more of us will need care in the future, or have to care for others.

“It’s vital to get the right information for planning financial needs as early as possible to make sure the person’s needs for later life are met.”

The message that people need to plan as early as possible for their financial needs in later life is simply not being heard, according to the survey.

Researchers found that 23% of people had not had time to think about retirement planning and 19% preferred to take a short term view of their financial situation and spend the money that they have.

Specialist advisors

A worrying 12% said their retirement planning did not concern them and they would have time to consider this in the future while 7% of Brits said that planning for retirement was not important.

Of the 43% of respondents who said they had yet to consider their financial retirement plans, they admitted having no idea of how they’re going to finance their future needs.

Tish Hanifan, chairman of the Society of Later Life Advisers, said the survey reflected what specialists advisors have already found – people want to enjoy their retirement and make choices for their care needs.

She added: “The best way to achieve this is for someone to factor the costs of the retirement they want to their financial planning as soon as possible.

“It’s important that consumers have access to information so they are able to make the right choices.”

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