The Scottish Widows seventh annual pensions report suggests that individuals are failing to save adequate money for their retirement. Therefore it is likely that there could be an increase in the amount of individuals 55 years old or more seeking outschemes at some time during their retirement.
The report from Scottish Widows made the discovery that retirement provisions have been low and remain low despite the fact that there is no getting away from ageing and eventually having to retire. Around one fifth of individuals have failed to save enough money towards their pensions, despite the fact that three quarters did understand the importance of taking responsibility for their own finances, rather than relying on state pensions alone.
Helping to Bear the Burden of Retirement
Individuals should be looking at putting away around an average extra £58 per month (based on £25,402 average salary and 9.3% and 12% saving rates). However many fail to look ahead from a younger age and leave it too late to start saving.
A representative from Scottish Widows said that even the younger generation should plan for retirement by saving. Due to the lack of funds many have in the bank and a lack of a saving culture many homeowners and future homeowners may find themselves turning to equity release schemes in retirement. The money locked up in the home could help to make retirement easier, giving homeowners a greater chance to enjoy their golden years.
Currently the report suggests that individuals were looking to retire at the age of 61, which is the same retirement age stated when the study was conducted this time last year.