Most Brits have only enough money saved to cover 37 per cent of their needs during retirement – and according to our research, the situation is growing worse.
People in the UK are living longer than ever before, but saving less. The country is a leading global financial services centre, yet is the worst in the world at saving for retirement1.
The vast majority of people are saving much less than they actually need in order to have a decent standard of living. When was the last time you assessed the progress of your retirement savings?
Money invested in Cash ISAs, with an average APR of 1.74%2, is being left behind by the rate of inflation – every year, goods and services become more expensive, but money left in cash ISAs is capable of buying less and less.
Not only are people failing to save enough, they are struggling to achieve profitable long-term returns on the investments they do have.
We believe the ‘savings gap’ is the biggest challenge facing the UK, but that the fact that it won’t hit for another decade or so means some people may bury their heads in the sand.
As a nation we need to see a sudden, seismic shift in people’s approach to saving, to help ensure everyone has enough put aside to afford an enjoyable and comfortable retirement.
We strongly urge anyone to read our ‘Thoughts. Actions. Results.’ document, which helps shed some light on the issue in more detail, and also to seek the advice of a wealth management professional who can provide sound advice that suits individual needs.
1 Money Marketing/HSBC “The Future of Retirement: A New Reality”, 20 February 2013
2 Moneyfacts, 6 February 2013