Three quarters of Brits expecting pension shortfall

22 September 2008 / by Rebecca Sargent
Just one in four Brits are confident that their pension will be sufficient to get them through retirement, new research from GE Money and has revealed.

The news comes despite the fact that 59 per cent of British adults have a company or private pension in place. The survey conducted by YouGov looked at the pension and retirement plans of more than 3,000 adult Brits.

And, according to the results 18–24 year olds are those least prepared for retirement as just 17 per cent have pensions in place and the thought has not even crossed the minds of almost half the people questioned in that age group.

Commenting, chief marketing officer at GE Money, Martyn Beauchamp said: "Unsurprisingly young people have made the least provision for retirement, but escalating living costs, difficulties getting on the property ladder and often crippling student debts mean they may be unable to build securities that previous generations have, and be at even greater risk of a retirement shortfall."

The results also showed that those who were most concerned about a pension shortfall include women and 35-44 year olds. Just 18 per cent of women believe their pension will be enough and 19 per cent of 35-44 year olds feel the same way.

Nevertheless, it seems the closer to retirement age the more confident Brits are about their pensions providing a decent wage in retirement, as 45 per cent of 55-64 year olds are feeling confident.

Offering advice on retirement planning, Mr Beauchamp added: "Retirement is a key life stage that requires early financial planning.

"Good financial management and being able to plan and save for the future is an important part of maintaining the family finances. The message is clear – it is never too early to start planning for your retirement and how to fund it."

© Fair Investment Company Ltd