- Research shows over 65s may not have enough saved for a comfortable retirement
- Only 53% of investors over the age of 65 think they have sufficient savings for later life
- When investors were asked what they want to be doing in retirement – 54% said they want to carry on working
At a time when it is more expensive to live than ever before, research from The Share Centre has discovered that 54% of over 65s want to continue working beyond the traditional retirement age. Interestingly, those surveyed believe you need approximately £230,000 in savings to provide a comfortable retirement. However, worryingly only 53% of over 65s think they have sufficient money saved to meet their needs. This therefore corresponds with why such a high percentage wants to continue working.
The Share Centre surveyed 1,500 personal investors* and asked them specifically what they want to be doing in retirement. Whilst the highest percentage of respondents wanted to carry on working, unsurprisingly past times such as gardening, charity work and travelling came in second, third and fourth places respectively. Interestingly, the biggest financial regret of those surveyed (38%) was that they wish they had saved more when they were younger.
Richard Stone, Chief Executive of The Share Centre comments: “In April 2015 pension legislation changes opened up pensions to allow investors to control their funds using vehicles such as personal ISAs, in place of the traditional pension pot. At The Share Centre, we have seen a 16% increase in those aged 55 and over holding ISA accounts, demonstrating that investors are exploring different savings options and taking an active approach. Furthermore, the value of these accounts has increased by 27% which additionally supports the trend of exploration we have seen since 6 April when the changes were bought in. New freedoms for investors will allow future retirees to take an active approach to their savings and using self-select accounts to manage their investments will benefit their pensions in the long term.
“To retire comfortably at 65 with an income of £20,000 per year, pensioners will need to have put aside at least £400,000 and those within our sample were almost halfway off of this benchmark. We were surprised to see a lack of confidence within our sample and feel that research such as this will encourage individuals to start investing, in cash or stocks and shares, earlier to support themselves in later life.”