Published On: Wed, Sep 25th, 2019

Pension news: UK retirees reveal financial goals ‘imperative’ for comfortable retirement | Personal Finance | Finance

From saving for a mortgage deposit to making sufficient pension contributions, there can be a lot to think about when it comes to saving during one’s working life. And, for more than a third (37 per cent) of retirees, feeling financially prepared was not something they experienced when it came to starting their retirement. That’s according to a new study of 1,000 retirees in the UK, commissioned by online investment service Bestinvest. The research also highlighted that a quarter (25 per cent) of those asked don’t feel financially comfortable.

Just shy of a fifth of respondents (17 per cent) admitted they worry about money at least once a week, while 23 per cent said they struggle to see how their savings will see them through another 10 years.

According to the survey, almost a fifth (17 per cent) of retirees said they rely solely on their state pension.

Should they be eligible for the full new state pension, this currently stands at £168.60 per week.

Jason Hollands, Managing Director at Bestinvest said: “As a rule of thumb, the earlier we start to make provisions for our retirement the better and our research highlights the need for realistic retirement goals, as advised by those who understand this the most.

“Whilst many may dream of a comfortable retirement – whether it’s spent golfing, traveling or spending time with friends and family – the underlying truth is that the chances of saving enough to continue an enjoyable standard of living after retirement is made easier if you start saving early on.”

He continued: “Now, more than ever, UK professionals want to retire younger. We see and read many stories of people who retire in their 50s, or even younger, which read like a hero’s tale.

“But our research shines a spotlight on the financial reality of retirement and will hopefully provide practical guidance and tips to ensure retirement – at whatever age – is a comfortable one.”

When asked to share the most important life and financial goals to reach before retiring, respondents said that paying off their mortgage, having cash savings, holding no credit card debt, and having a private pension were “imperative” to a comfortable retirement.

The same retirees also shared their thoughts about what they wished they knew when they had first started working.

They also looked back at major milestones and the age they thought they should reach them in order to achieve a comfortable retirement.

Bestinvest’s ultimate guide to retirement – according to current retirees

22 years old – Begin saving

23 years old – Open a private pension

27 years old – Buy your first home

30 years old – Begin investing in stocks and shares

33 years old – Clear all credit card debt

35 years old – Clear any car finance debt

40 years old – Buy your ‘forever’ home

50 years old – Pay off your mortgage

The state pension can be claimed once a person reaches state pension age.

This is currently rising, however a person can check their own state pension age by using the government’s “Check your State Pension age” tool online.

In addition to finding out when they’ll reach state pension age and what their Pension Credit qualifying age would be, this service also explains when the user will be eligible for free bus travel.

In England, a person can get a bus pass for free travel when they reach the female state pension age, whether they’re a man or a woman, the government website states.

In Wales, once a person reaches 60, they can get an older person’s bus pass.

Source link

Most Popular News