Workers Urged to Retire Seriously or Risk Retirement Poverty: ‘It Won’t Be Enough’ | Personal finance | Finance

Independent financial adviser Rebecca Robertson has warned savers against postponing retirement savings until the last moment. She warned: “It will never be enough to live on.” Ms Robertson told the sluggish behavior towards retirement savings “is the psychology and the language” surrounding the subject.

Ms Robertson shared in an exclusive comment to that sluggish behavior towards retirement savings “is the psychology and the language” surrounding the subject.

The general rule is that savers should set aside 20 to 25 times their annual expenses.

The average salary for a full-time working adult in the UK is £31,772 a year, and those wishing to continue their current lifestyle in retirement will need around this amount for their annual expenses.

That leaves a higher target of £794,300 for a comfortable retirement.

In economic times when saving for an emergency fund is almost considered a luxury, this goal may seem simply unattainable.

Additionally, many don’t want to face the reality that their retirement won’t be as luxurious as they had hoped, causing them to put off retirement planning even further.

Ms Robertson explained: “When it comes to finances and retirement, it’s something that people put off. Traditionally in the UK, pensions have had a very bad press over the last 30 or 40 years because of the way they have been regulated.

She noted that while state pension regulations are much more regulated due to their government support, raising the state pension age is of equal importance and concern to pensioners. savers.


Ms Robertson noted: “In fact, our reliance on the state is diminishing, but the steps people need to take in terms of alternatives are not changing.

“People just think, ‘I’m just going to work longer’, but once you hit 65 and you have a few more years to go before that state pension can kick in, it’s unfortunately too late. to worry about.”

Saving for retirement is generally seen as something savers should get ahead of when they can.

However, this is rarely put into practice as young workers only face the dilemma when it may be too late.

Ms Robertson added that this is not the only problem facing retirement savings: ‘What happens is that they contributed to a pension through work, but because they checked this box, they actually didn’t look at what that projection might look like. ”

“They might put in two or three per cent a month which, even if you’re earning the national average wage, isn’t enough money to retire on.

“Even if your employer also contributes, even if they are doing very well and you have a fantastic retirement system that generates excellent returns and minimal costs, it will never be enough to live.”

She pointed out: “People’s perception of retirees has changed, but their perception of pensions has not changed and their perception of retirement has changed.

Changing mindsets regarding finances, where younger generations are getting involved in investing earlier than their parents, may also be to blame when it comes to the lackadaisical view of retirement savings.

Ms Robertson explained: “People love bitcoin, they love quick wins. But why has Bitcoin done more? Because it doesn’t have the previous perception of pensions in terms of being taken seriously because they think it’s too late.

“The thing is, it’s never too late and they’ll always be tax-efficient because the government wants people to have money invested in pensions, but people don’t see them as a benefit. “

Ms Robertson also advised newbie investors, saying, “When you have no experience, only invest what you can afford to lose, especially in Bitcoin, because we don’t know the outcome. When it comes to property, pensions or any type of investment, we want it to be diversified so you don’t have all your eggs in one basket.

About Ian Crawford

Check Also

Retirement savings on PIP: How can I provide a pension for my daughter who is applying for a PIP | Personal finance | Finance

“I have a 40 year old daughter who is autistic (high scale) currently on PIP. …