90 per cent workers not putting enough aside for retirement
Nine out of 10 of the working population who have started seeking financial advice from the deVere Group in 2013 were not adequately saving for their retirement, the firm has revealed.
This statistic is extremely alarming. 90 per cent of all the new clients of working age who have sought the financial advice of deVere Group since the beginning of the year were not putting enough aside to be able to enjoy a comparable lifestyle when they retire.
As such, implementing a tailor-made, realistic and workable retirement plan, as part of a holistic, long-term financial strategy, is often a top priority for our financial advisers during the early stages of their work with new clients.
There seems to be a certain ‘head in the sand’ mentality when it comes to saving for our mature years. This is very concerning, particularly as we’re living longer, meaning the money we accumulate has to last longer; in the future, it’s likely that governments will not be in a position to support older people like they have done for previous generations; and because of the growing deficits in company pension schemes.
Unless there’s a radical shift in the savings culture, too many people are going to reach retirement and find they have to downgrade their lifestyle or continue working longer than they had expected and hoped, due to a lack of funds.
So, how much of our income should we be putting aside for our retirement? That depends on your age and when you started seriously saving, amongst other factors.
However, in general terms, the organisation suggests that people aged between 25 and 34 should be saving between 15 and 25 per cent of their income, for those between 35 and 44 this should increase to 25 to 35 per cent, for the 45 to 54 bracket it goes to 34-45 per cent, and those 55 and over would need to save considerable amount more, depending on the exact age of the individual as well as their circumstances.
It is very important to stress that whatever age you are, the time to start saving is now – because the earlier you begin, the easier it will be reach your goals – and also that it is never too late to start saving, as there’s always something that can be done to help you secure financial freedom in retirement.
Nigel Green deVere Group
Blog written on 24 th April