Many older workers are expecting to use inheritance money or property sales to boost their retirement funds, as saving is becoming more difficult.
This year’s Real Retirement Report from Aviva revealed that many over 50s are finding it difficult to save after “essential” expenses have been covered, despite workers annual salaries peaking while in their early fifties. Low salaries and having to assist children financially were cited as reasons that older people were finding it difficult to put extra income into a pension.
Leaving Retirement Funds to Chance
The survey was completed by over 3,000 people aged 50 and above. 12% of those surveyed said that they would take advantage of higher earnings by saving into a pension, but 20% said they would use extra income on leisure and everyday living. Around a quarter of over 50s also said that they would downsize their property and use the extra cash they received to help provide a comfortable retirement. 24% said they were counting on receiving inheritance money to help provide in retirement, with an astonishing 13% saying they were confident on being able to win the lottery.
Taking Your Pension Seriously
Saving for retirement should not be left to chance, and if possible, should be done as soon as possible, certainly before you reach the age of 50. 22% of those surveyed by Aviva said that they are yet to take pension saving seriously, with 41% saying they haven’t calculated how much they will need for retirement. You should aim to give yourself as much time as possible to prepare for retirement, and this involves working out how much you’ll need to save, and checking your state pension forecast.
If you would like help and advice on saving into a pension, please get in touch. We can help you take steps now to benefit from your full retirement options. You can read more on the Aviva Real Retirement Report on the This is Money website.