A new independent survey of 2,000 UK adults has found that 54% feel their generation’s standard of living when retired will be lower than that of their parents or grandparents and 37% are worried they will not have the means to help with their children’s and/or grandchildren’s financial futures.
Research by Smartsave, a Chetwood Financial company has discovered that just under a quarter (23%) are considering retiring abroad due to the cost of living in the UK.
A total of 40% of all respondents stated that they are financially worse off than they were two years ago – rising to 46% among those aged 35-54. Meanwhile, 22% felt that if the cost of living keeps increasing, they’ll have no choice but to decrease or cancel their pension contributions.
Andy Mielczarek, Founder and CEO of SmartSave, a Chetwood Financial company, said:
“For many, it feels that the traditional notion of a well-earned retirement at the end of decades of work is becoming less and less assured. Rather, savers are increasingly likely to think that a decent retirement is out of reach compared to earlier generations.
“Saving not only for your own retirement but for the future prosperity of your family is one of the great motivators of success, so to see such insecurity in the outlook of these respondents is disheartening. Cancelling pension contributions to afford the cost of living is inherently unsustainable, and it’s clear that the challenges of today are having an impact on tomorrow.
“It is critical that consumers are provided with the freedom to fulfil their financial goals, especially when it comes to creating retirement plans. The variety of savings and investing options available today is promising, but the financial industry must do more to increase public education and awareness. This will ensure people can make educated decisions and achieve their desired futures when leaving the world of work.”
Spencer McCarthy, Chairman and Chief Executive Officer at Churchill Retirement Living, said:
“The notion that retirement is about slowing down and putting your feet up is outdated. Life expectancy is at an all-time high and rising every year, and we should be supporting people to live life to the full, regardless of their age. More needs to be done to ensure cost-of-living pressures do not compromise the quality of life for those at retirement age, including a renewed focus on pension planning, greater choice of suitable housing, and a change in the public perception of what it means to get old. With these in place, the prospect of fully enjoying retirement is becoming increasingly achievable.”
