Retirement savers are giving up on their pensions and looking for a big lottery win to fund their later years.
The sad fact about pensions in the UK is more people believe the lottery will better provide for their old age than savings.
A quarter of adults (24%) and a third (32%) of pensioners aged between 61 years old and 75 say they are banking on a lottery win for financial security, while a fifth (22%) agree saving will give them financial peace of mind in later life.
The statistics were collected in research by the Equity Release Council, which helps pensioners release cash from their homes in retirement.
Pension confusion
The study also revealed only 25% of retirement savers feel their financial circumstances will improve in the next five years to help them save more, while everyone else is confused or has simply given up on a pension.
The over 60s have the least confidence in their ability to save, with 40% expecting their finances to deteriorate.
Younger retirement savers are more upbeat, with 40% of those aged between 21 and 30 predicting their fortunes will improve by 2018.
Council chairman Nigel Waterson said: “Winning a lot of money on the lottery would be great for anyone, but shouldn’t be thought of as retirement planning.
Savings attitudes
“The sooner someone starts saving after they start work, the better, as they have longer to put aside money for their later years and a small amount can grow significantly over a working lifetime.”
Some key figures revealed by the research showed many people felt they cannot afford to save any money for their retirement or are already saving as much as they can afford – and these numbers far outweigh those who consider they are saving enough.
Attitudes to saving for retirement among UK adults
|
All UK adults |
Aged 18-40 |
Aged 41-60 |
Aged 60+ |
|
| I am confident that I am saving enough |
12% |
8% |
13% |
28% |
| I am already saving as much as I can afford |
31% |
23% |
40% |
27% |
| I am already saving, but only a small/token amount |
13% |
17% |
11% |
3% |
| I can’t afford to save anything |
28% |
32% |
26% |
18% |
| I don’t need to start saving at my age |
3% |
5% |
1% |
7% |
| I don’t understand how much I need to save, so don’t |
4% |
6% |
3% |
2% |
| I have got too many other things to worry about |
16% |
20% |
14% |
8% |
Source: Equity Release Council
