The Money & Pensions Service (MaPS) has undertaken some research among people aged 50-70 with some pension savings besides the State Pension.
The results make disturbing reading:
- 37% of over 50s are leaving their retirement financial planning until their final two years before retirement or won’t prepare at all
- 35% of retirees said they left financial planning to the last two years or didn’t plan at all
- 69% of the unretired have done either no or very little planning around retirement finance
- 27% (equating to more than 3 million over 50s if the sample is representative) say that they will only start financial planning with two years or less to go before retirement
- 10% won’t plan their retirement finances at all
- Just 7% feel fully prepared
These results highlight a big worry that a sizeable number of impoverished pensioners is being created. They will have pensions, and many may be renting their home into old age. It is hard to see an answer for this group.
What should I do?
The research reveals the top two tips recent retirees would give the unretired in urging them to be better prepared for retirement. These are to save more towards retirement and start planning sooner.