Three in five under-prepared for retirement
Tuesday, 27 Feb 2007 16:18
3 people in 5 are not financially ready for retirement
Three people in five are not financially ready for retirement, new research shows.
But this is not just a UK problem, with figures from Aviva showing 60 per cent of the world's working population is not ready for their sunset years.
"Our research shows that the pensions black hole is not just a UK-specific issue but an area of global concern," said Aviva chief executive Richard Harvey.
"Broadly, the world's pre-retired population seems to have resigned itself to the fact that the term 'retirement age' may not apply to a specific age and will become increasingly ambiguous."
Aviva's study surveyed 50,000 people across 23 countries.
It reveals 48 per cent of all retired people think they should have done more to boost their pension pots and half of those still working expect to stay employed in their twilight years to fund their future.
For those concerned Aviva has launched a
new site to bring simplicity to retirement and allow people to work out what they need to do to ensure a comfortable retirement.
And this move has been welcomed by government ministers and consumer groups alike.
"Financial decisions can be difficult. Financial products are complicated and there can be too much jargon," said Treasury minister Ed Balls.
"We believe there is a gap in the provision of this last type of advice - generic advice - and we are pleased to see
Six-steps.org playing a role in this area."
Teresa Perchard, director of policy at Citizens Advice, added: "There is a significant need to help thousands of people make the most of their money, both now and in the future.
"People need the confidence and ability to budget, borrow and save effectively. Providing advice and teaching financial skills really does work as our bureaux have seen people improve their money management skills and confidence significantly.
"We very much welcome initiatives which help with this."
The six steps to a secure retirement are:
Take control - make a plan for your future
Know yourself – how do you feel about money and taking risks
Save little and often – put some money aside every month
Invest for the future – build up your long term savings
Protect yourself – look after yourself and your money
Get advice – speak to a financial adviser