95% of people, including contractors, nearing retirement age aren’t ready for the financial implications it will bring, according to MGM Advantage.
This is a dramatic increase from the 61% who said they were not fully prepared in 2008 before the credit crisis hit the UK.
The survey, which is conducted annually, showed that 1.2 million adults aged 55 or above who are still in employment do not feel as if they are prepared for retirement. The data also shows that men are slightly more likely than women to feel prepared.
Only 15% (7 million people) have sought professional advice about retirement and 8% have referred to their bank. A lot of people hope to continue working past the normal retirement age, and 33% of those aged 65 or over expect to continue working until they are 71. A further 9% said they expect to be working at least until they reach the age of 80.
One of the director’s at MGM Advantage, Craig Fazzini-Jones, said he found it extremely worrying that such a large amount of people are unprepared for retirement. He said it was vital for people to be proactive with regards to their finance and pensions, and to seek professional advice prior to retiring. Without this, he said that more people will be working longer in order to get an adequate retirement income.
A retirement calculator could prove to be a useful forward planning tool, according to Ark Financial Planning. Phil Perry, a co-director of the firm, said that many people are still relying on their property to fund retirement, rather than ensuring they have sufficient cash put away.
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