Almost half of investors are concerned they will not have enough money to live comfortably on when they retire, while one in 10 have yet to get their retirement savings started with a pension.
The study from Schroders, also reveals a worrying lack of enthusiasm for pension planning. Just 14% of UK investors were “very concerned” about their lack of savings, while 30% were “quite concerned”. A quarter said that they would rather spend their money on other things.
This attitude was most common amongst so-called ‘millenials’ aged between 18 and 35. Here, 35% said they had other spending priorities, while 16% said they could not afford to pay into a pension.
Among unconcerned investors, 19% are relying on property investment to fund their retirement, while 12% expect to raise money by downsizing.
This is particularly worrying given 56% of Moneywise users polled earlier this month say they won’t be able to comfortably live on the new state pension.
Those investors that were concerned about their lack of savings said their efforts were being hampered by a lack of knowledge. Almost four in 10 said they were unsure how much they needed to save for a comfortable retirement, while 31% said they did not know what to invest their money in.
Robin Stoakley, managing director of UK intermediary at Schroders, comments: “We are concerned that the results indicate a general lack of engagement for pension planning. This is very worrying given the clear message coming through that future generations of pensioners will have to provide for themselves.”
“We are particularly concerned for millennials as they will not benefit from the intergenerational transfer of wealth to the same degree as previous generations thanks to longer life expectancy of their parents and grand-parents. The pensions landscape has seen significant changes over the last three years and the need for financial advice and financial education is greater than it has ever been.”