Despite the growing anxiety about what future retirees may face and their struggle to save for retirement, the majority of the 2000 over 45s surveyed feel bullish about their later life plans with 9/10 of them estimating that their property will be worth less than 50% of the total. The current average house price stands at £245,495 – skewed by the high cost of houses in london, Partnership has calculated that these people would be worth a minimum of £490,990 by the time they retire. This figure questions whether this 90% will genuinely hold assets worth that much when they come to retire or if they are grossly overestimating the amount they will have in their pensions and savings.
British workers between the ages of 45-54 are being described as the ‘lost generation’, research has found that half of this age group have not been making financial plans for retirement. Along with this having dependent children and the rising cost of living have been squeezing people’s budgets and incomes with Blackrock – an investment firm who carried out this research estimating that this age group are only saving 12p from every £1 that they earn. They also stated that many in this age group have large misapprehensions about their wealth when they retire. Ged Hosty of Partnership has said that “while people over the age of 45 have arguably benefited from the rise in house prices, many people simply don’t realise this and are widely optimistic about their retirement provision”, the research also suggests that many people between the ages of 45 and 65 have not given serious thought to what their net worth is – something that needs to be done before retiring.
Pensions consultant Malcolm McLean suggests that 45s and over should properly assess their financial situations to ensure they are saving what they need to retire comfortably. He stated that “because there has been a tendency over recent years to start families at a later age, many middle aged people now still have young children to care for and in some cases they now need to care for their elderly parents”.
If you are struggling with your finances and need some support there is help out there, charities, citizens advice centres and debt management companies can all help you take control of your finances to help you figure out your future in a positive way.