When will I have enough money to retire? And other big retirement questions…
Tuesday, January 12, 2016
If you have more questions than answers when it comes to planning your retirement, it might feel pretty stressful – but at least you’re not alone, as our long-term saving and retirement survey discovered…
Looking at the results of our Long-Term Saving and Retirement survey, we were struck by the uncertainty many people have about how their retirement will shape up.
For a start, over a third of respondents who were still in employment said they don’t know when they will retire. And while no one would be surprised to hear that 20 or 30-somethings haven’t yet decided when they’ll wave goodbye to their working lives, this includes a third of over-45s, who you might expect to be a little further along in their planning.
It seems unlikely that these people will come to a conclusion anytime soon either, as almost a quarter say they’ll continue to work until they’ve saved enough to retire on, and even more – 27% – say they’ll keep working until they no longer can. That’s not a firm plan, is it?
It’s not as if we’re neglecting to save for our retirement – the majority of respondents (79%) said they had a pension, and nearly half have other plans in place too, to supplement their retirement income. But still nearly two-thirds of respondents aren’t confident that they’ll have enough money to live on when they retire.
There is also uncertainty about whether mortgage repayments and family dependants will be a factor in retirement, which will obviously have a bearing on the amount of income needed. Our survey found that more people expect to be paying off their mortgage in retirement in the future, compared with those who are already retired and still paying a mortgage. Another 20% of respondents don’t know whether or not they will have paid off their mortgage by the time they retire.
An additional finding was that while only 9% of respondents expect they will still have dependants living with them when they retire, 16% of those already retired actually have dependants living with them – perhaps this indicates a certain level of optimism on the part of those who haven’t yet retired!
In all this uncertainty, there’s one thing for sure: the whole concept of retirement is in a state of transition as the average age of retirement is set to rise. But it’s not all bad news by any means: there are advantages to working for longer, and there are options to consider if you’re not sure you will have enough to retire on and want to take action.
Find out how your retirement plans compare with the respondents to our long-term savings and retirement survey here.
Work out how much money you will need to fund the retirement you want with our interactive retirement calculator.
*The Foresters Friendly Society Long-Term Savings and Retirement Survey was carried out during August 2015 in partnership with Mature Times and completed by 1,489 people.