On June 20th an article on Financial News said “Most not saving for pension”. The article mentions that even less then half of the working age adults are saving money for their retirement.
A survey shows that less then 49% are saving for old age. Although this is better then the 46% of the last year but still almost a quarter have no savings at all according to Scottish Widows UK Pension Index.
According to the Scottish Widows many of the currently employed people will have to live on 70% to 80% less working age income after retirement. Ian Naismith, head of pension’s market development at Scottish Widows, said: “While confidence seems to be returning slowly to the pensions market, 51% of those who should be preparing for retirement are still not saving adequately.” (more…)
A story featured in the June 20, 2007 edition of Yahoo News indicated that fewer than half of all working-age adults are not saving enough for retirement. A survey of 5,000 people showed that only 49% were setting aside enough money for when they retire, a quarter of these people not having any savings at all. This figure is compared with last year’s findings, which showed 46% not having enough put away.
This also shows that the number of working-class adults headed for an easy retirement is 6% less than that of 2005. This means that many people who are currently employed could go into retirement living on less than 70% - 80% of working income.
Two-thirds of the people not saving are men, with 31% of woman making proper arrangements for retirement. The self-employed are also a high risk group with less than a third setting aside enough money to live off of when they retire. And a third of the people who did save a little bit said they did not know what their main income would be in retirement.
Making choices with pension schemes can be a real tester as it will determine your retirement lifestyle. Choices made today can lead to a very comfortable retirement compared to a financially drained retirement.
The major factor is to assess the amount of risk involved in the investment according to your circumstances, and to be able to create a mixture of a portfolio of assets to ensure a maximum and safe return for your investment.
Commonly, the nearer you are to your retirement age, the least risk can you take towards your pensions schemes as there is little time for risk factors. However, if you are in your twenties, high risk investments can still be an option like equities, that will ensure, no matter what the market conditions, the value of equity is sure to rise by the time you retire. (more…)
