With the cost of living crisis worsening in the UK, many workers are concerned about the future as well as the present as the pressure of rising interest rates and the prospect of a recession makes it increasingly difficult to put money aside for retirement.
However, when compared with the population of mainland Europe, it appears that those in the UK are further behind in their preparation for retirement, as new data reveals that only 24% are contributing what they can each month to their retirements funds, whilst a larger proportion of those in France, Italy, Spain and Germany commit to saving what they can on a monthly basis.
This is apparent in the number of Brits having to rethink their retirement plan, with this figure now reaching 18%, a scenario which is concerning 21% of women compared with 15% of men. This may in part be due to the fact that only 9% of women hold a private pension compared to 19% of men. This instability concerning the future of UK workers makes for bleak prospects, with many anticipating having to work past the age of retirement in order to make ends meet.
On average, those belonging to Generation X living in the UK will need to save over £330,000 in order to retire comfortably, a number that seems astronomically high and unattainable to many, so how can the average worker possibly hope to save that much over their working lifetime? We’ve put together some tips on saving for retirement to help you.
- Create a budget and follow it
The best way to plan a budget in order to save is to know how much you can spend weekly. - Pay off your mortgage
Your home contributes significantly to your fixed expenses. By paying off your mortgage you can finally live there ‘rent-free’ which eliminates a large monthly spend. - Talk to your spouse or significant other about savings
Be open with your partner about your finances and about how you should be saving and what you expect you will spend in retirement. It’s always helpful to chat openly about finances and avoids any awkward discussions later down the line. - Prioritise your pension
If you concentrate on saving for your pension rather than saving short term this will help you long term.
If you would like to arrange a review of your finances and retirement plan, you can book a complimentary consultation with one of our experienced advisers by clicking the link below.
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This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
An investigation by The Pensions Regulator has for the first time resulted in an immediate custodial sentence for the perpetrator of professional pensions fraud, after William Bessent, an accountant who used his position as the trustee and administrator of a pension scheme to steal his clients’ savings, was sentenced to 40 months in prison. He pleaded guilty to multiple fraud charges, making prohibited employer-related investments, and separate charges of acting as a director while disqualified.
That is the question concerning many expatriates at the moment. What a difference a few days can make to the whole issue, before Cameron went to the EU to try to negotiate with a group of people that dislike anything that could disrupt the status quo or threaten their position (no matter how valid the argument), it looked like the in vote had the upper hand.