Latest government figures reveal that a quarter of all pensioner households have no money saved for retirement.
A report by Age UK has called for the financial services industry to rethink how it helps people plan for their retirement. With a quarter of retired households having no savings at all, there is worry that some people may struggle to cope with unexpected costs. Age UK ‘s report “Financial Resilience in Later Life: Who is well placed to cope with life events?” suggests that the current terminology used to persuade people to start saving does not resonate very well. They suggest that a more “down-to-earth” approach is taken to help show the importance of saving for retirement.
Financial Advice for Retirees
Older people said that to feel “well placed” during retirement, then they need to have enough money that they can cope with what life throws at them – both preparing for and responding to unexpected events. The financial experts interviewed for the report say that maximising income and maintaining a buffer for financial shocks were key to having a good foundation for retirement. They also recommend that individuals researched and understood different financial products as well as remaining as independent as possible.
Accessible Financial Advice
Age UK have also called for interventions from the financial sector to explicitly show what a reasonable retirement plan looks like, and inform that there can be limits. By becoming more accessible and making the idea of planning for retirement much more relatable for savers, the financial industry can take huge steps to reducing the worrying figures highlighted in the charity’s report.