State pension ‘not enough’ to retire on says financial advisor
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
State Pension pension age is currently set at 66, and it is at this time that many individuals traditionally feel comfortable leaving the workforce. Having built up workplace savings, at this point, individuals are able to unlock the state pension entitlement from the Government to supplement their income. However, new research has shown many are not confident state pension age will still be the point at which they retire.
This is due to concerns about finances, particularly a “retirement income shortfall”.
The research, compiled by Standard Life, looked at the prospects of Generation X – those born between 1965 and 190 – currently in their 40s and 50s.
It found some 37 percent of those asked now plan to work past the state pension age altogether.
A quarter said they plan to work part time past this age, while 17 percent said they would be required to work on a full-time basis.
However, many have serious concerns about whether they will actually be able to continue working in later life.
Poor physical and mental health were cited as reasons for potentially having to give up work later down the line, as well as fears of age discrimination.
A rapidly changing job market and the fallout of the pandemic also struck some trepidation into Generation X individuals.
Andy Curran, CEO of Standard Life, part of Phoenix Group, said: “Many Gen-Xers feel they’ll never retire and expect to continue working to have an income in later life.
Universal Credit warning as many Britons miss out on average £2,900 [INSIGHT]
HMRC warning as ‘high numbers’ of tax scams surge to target Britons [UPDATE]
Free bus pass: State pension age changes could affect your entitlement [ANALYSIS]
“Others want to work but fear discrimination or face health barriers.
“With many Gen Xers facing a challenging financial future, we believe that society and employers need to wake-up to the talent and experience of Gen X, and do more to support them.”
Mr Curran highlighted the “diversity and experience” many people of the Generation X age category contribute to the workplace.
He expressed sadness that many felt marginalised and unaccommodated in their working lives.
Mr Curran added: “Flexible working and lifelong learning can help employees continue to stay in the workforce and save for longer.
“Access to financial learning and wellbeing programmes can also help ensure everyone is equipped with the knowledge they need for later in life.”
However, it does not all have to be doom and gloom for those who are worried about their retirement, and taking steps to forward plan will be important.
Pension Wise is a service offered by the Government to outline the options for people who have put savings aside for retirement.
What is happening where you live? Find out by adding your postcode or visit InYourArea
The one hour appointment with an expert could equip Britons with the tools to change their outlook and accelerate towards their goals.
Some individuals also may have more pension savings put away than they originally thought, but may have lost track of these throughout the years.
The Government also offers a free Pension Tracing Service to help Britons find their pension provider and reunite with their cash.
When it comes to the state pension, the online forecast tool can assist individuals in understanding how much their sum is scheduled to be and when they can receive it.
However, it also enables Britons to see if they could boost their state pension sum through a series of actions.
Finally, finding as many savings vehicles as possible can help individuals to build up cash for retirement.
Whether it is through savings or ISAs, an additional income stream or equity release as long as advice taken, there could be many opportunities to increase one’s amount for later life.
Source: Read Full Article