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Are you ready for retirement?

Your Money
Tuesday 12 February 2019
Predicting the future has never been easy. It can throw up anything.

But being prepared to the best of your ability is essential.

And putting measures in place to make sure you’re as financially solid as possible in retirement is as important as anything else.

Really, retirement should be a time of reward.

You’ve put in the hard yards during your working life. Now it’s time to relax and spend your time doing the things you were always too busy to do during years prior.

Taking that once in a lifetime holiday, spending time with your family, making sure your family and friends are looked after, finally getting round to those long-awaited home and garden improvements. That’s what your latter years are for.

But a significant number are never afforded that luxury.

And it’s not exactly surprising when you look at the facts and figures.

Retirees were faced with a modest £19,900 pension income last year*. Yet, average household outgoings for the same demographic were around £26,000*2. And that’s with the main focus lying solely on the basic areas of expenditure.

Add to that the 34% rise in unsecured debts, such as credit cards, against those between the ages of 55 and 74 over the past four years*3, and it’s clear to see a potentially worrying financial trend taking shape.

But one of the most concerning statistics is that Britons underestimate the cost of retirement by around 15%*4.

Savers expect living expenses during retirement to take up around a third of their current yearly income, when, in reality, it’s over half.

And those approaching retirement are expected to have to sacrifice more. It’s predicted they will need income equivalent to two-thirds of their current salary during their later years.

Of course, however, each situation is unique.

But, it’s important you head into retirement with your eyes open and begin your financial preparations as early as possible.

Otherwise, it may be too late.

* https://www.thisismoney.co.uk/money/pensions/article-5262331/Retirees-2018-enjoy-average-annual-income-19-900.html
*2 https://www.which.co.uk/money/pensions-and-retirement/starting-to-plan-your-retirement/how-much-will-you-need-to-retire-atu0z9k0lw3p
*3 https://www.telegraph.co.uk/financial-services/retirement-solutions/equity-release-service/rising-unsecured-debt-among-over-55s/
*4 https://www.thisismoney.co.uk/money/pensions/article-5900575/Savers-underestimate-cost-living-retirement.html
Page last updated: Tuesday 12 February 2019