Brits in retirement funding ‘daydream’

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Only 7% of Britons expect to be able to afford an independent retirement, but 49% expect to have a similar or better standard of living in retirement as they do when working. This is one finding from new research from SHIP (Safe Home Income Plans), the equity release trade body.

Despite 91% of people agreeing that they were personally responsible for ensuring that they are financially stable during retirement, the research shows that 93% of Britons plan on taking state benefits when they retire. Only 2% of respondents stated that they would refuse as they don’t want to be a burden on the state.

61% of people intend to fund their retirement through a state pension, while 35% of Britons will rely on a private pension. 50% of Britons will use their savings and 17% intend to plug the gap in their pension savings by working part-time to supplement their income.

The pension saving patterns of Britons remain inconsistent, as 34% of Britons have no regular pension plan, whilst 21% have saved into one in the past, but no longer do. Even more contradictory, 21% of Britons say that their structured pension plan will make up a large part of their retirement provision, but 23% of those who save regularly into pension plans reveal that it won’t be enough for them to retire comfortably on, leaving a gap in their finances.

Only 17% of people have had help planning their retirement from a financial adviser (either as a one off, or as regular help), while 71% of Britons hadn’t spoken to their partner about planning their retirement finances.

Andrea Rozario, director general of SHIP, said: “It is clear that many people are living in a retirement funding daydream. They aren’t saving enough money

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