Poor planning trends by those 55+

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Aegon UK says a new survey into Retirement Readiness that it commissioned has uncovered a “worrying lack of preparation” among those closest to retirement (55+).

Following on from the global study in to Retirement Readiness carried out by the Aegon Group, this study focuses entirely on UK consumers.

Of those within 10 years of state pension age, more than three in 10 don’t know how much they’ll need to live on in retirement.

Three in 10 of those closest to retirement still have no active pension plan in place, while one in four don’t know how much income they’ll get from their savings in retirement.

Two thirds admitted they had no back-up plan in place to provide an income should they be unable to work before they retire.

The pensions gender gap remains wide, with almost 40% of women having no form of active pension, compared with just over 30% of men.

The biggest provision shortage is in Wales and the South West of England, where 46% and 42.9% of respondents respectively have no personal or workplace pension.

However, Aegon said that young respondents, aged 25-34, are showing some signs that they’re beginning to take the right steps to control their future.

Duncan Jarrett, managing director of retail and at retirement at Aegon UK, said: “Some of our findings are alarming to say the least with worrying levels of confusion, apathy and realism and we’ve also discovered some surprising regional trends.

“Perhaps the most worrying finding of all is that these poor planning trends are evident in those closest to retirement, in the 55+ age bracket. Many industry analysts and the media have previously claimed there is a pensions time bomb ticking in the UK, but our study suggests time has almost run out.

“Contrary to this there are positive signs in the younger respondents as 25-34 year olds are demonstrating early signs of strong retirement planning and personal responsibility.

“There is huge room for improvement, but there are simple solutions for this important problem that can be adopted by anyone.”

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