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Never too early to plan for retirement

Never too early to plan for retirement

People aged 65 and over are keen to pass on their tips for a brighter financial future with over half (55%) of those in later life worrying that today’s twentysomethings will struggle financially in retirement, according to research from Age UK Enterprises, part of the Age UK charity.

With more than two in five (43%) respondents indicating that they themselves were financially unprepared for retirement the guidance they want to pass on is based on their own first-hand experience of the potential financial pitfalls when planning for later life.

Of those that said they were financially unprepared for retirement, the key reasons cited by those aged 65 and over include only having a state pension available to them (32%), not saving enough towards this stage of life (19%) and rising living costs eroding their small disposable income (47%).

Looking back two in five (42%) would have paid more in to their private pension, one in five (21%) would have cleared debt when they were able to, and over a third (36%) would have started saving earlier while a third (33%) would have saved more.

When asked what financial learnings they would tell their grandchildren, two-thirds (66%) would say that it is vital to plan ahead for retirement while more than half (54%) would tell them to build their financial awareness early and become savvier consumers. Half (50%) of people aged 65 or over would advise their grandchildren to shop around for financial products and secure the best deal for them.

Debt remains a significant concern across the generations and two-thirds (65%) would advise grandchildren to avoid credit card debt where possible.

Gordon Morris, Managing Director, Age UK Enterprises, said: “The need to be savvy and well prepared for retirement is evident in this latest research. We are keen to see people learn from those in later life by preparing for their retirement well and shopping around to make well informed financial purchases which can help tackle any pressures on their disposable income.

"This is particularly important for those that have a direct contribution pension who may want to purchase an annuity which is a once in a lifetime purchase decision. The decisions older people make about their energy and insurance providers can also have a significant impact on their financial situation in retirement. The message from older people is clear and we should all aim to plan ahead for retirement and shop around for financial products to make sure we get the right products for our needs.”

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George Bailey