It was recently reported that many people are not prepared for the day to day financial changes that take place on retirement and one reason for this could be that we simply do not believe that 65 is old.
Contractor healthcare provider Bupa recently carried out global research that showed that 72% of people aged 65 or over do not think of themselves as old. In fact, 32% of French people believe that people only become ‘old’ once they get over the age of 80.
Russia comes out worst in the preparation stakes with two-thirds of the working population making no provision for their latter years. Indians, on the other hand, seem to be well prepared with just under three quarters (71%) making advance financial preparations for retirement.
Dr Sneh Khemka, the medical director of Bupa International, is urging people to put aside funds in case they require long-term care as they get older. This is particularly relevant to contractors, freelancers, and those with an irregular source of income.
The Bupa research also discovered that more than one in five people over the age of 65 have made no financial provision for their retirement and a massive two thirds of pensioners expect to depend on relatives for care.
However the LSE recently published a report saying that this may not be a feasible option for many. We are seeing an increase in single-person households, the breakdown of the extended family, more women in PAYE employment and a growing ageing population; all of which are factors that could mean families would be unable to help their elder relatives.
More information on contractor pensions can be found in our financials section.
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Image: Officially Retired Tiara Crown by stevendepolo
