Savers rely on lotto win instead of saving to fund retirement
Millions face a bleak retirement as they are failing to save enough cash to fund even a modest standard of living, according to the Institute of Financial Planning.
The IFP has revealed four out of five workers do not believe they are saving enough to fund a comfortable retirement.
The survey also found that only 14% of women and 23% of men are satisfied with their finances.
For many (29%), winning the lottery is considered the only way they can improve their finances.
If an unexpected windfall of £5,000 came along, a third (38%) reckon they would pay off debts and 29% would put the cash in to savings.
Almost a third of workers (31%) are not making any contributions in to a pension – and 14% have never paid in to a pension.
The dire revelations are part of the IFP’s annual financial planning survey to promote financial planning week (November 21 – 27, 2011).
Other findings disclose 10% of workers believe they will never be able to afford to retire.
Many blame the rising cost of living and a struggle to pay debts as the main reason for not saving.
Money problems are making most people miserable – with 77% confessing they would feel happier if they had more cash.
Two-thirds (66%) of women and more than half (54%) of men say they worry about money either always or most of the time.
Nick Cann, the IFP’s chief executive officer, said: “These findings present a worrying picture for so many people who are facing an uncertain future yet not taking appropriate steps to improve their situation. There seems to be awareness but no link to action.
“Financial planners can help but the challenge is to ensure a greater engagement with the consumer so that they have confidence in the route that they are taking. During Financial Planning Week we’re providing practical tips, tools and information that people can use to improve their finances and get a clearer understanding of the choices that they have.
“These things can hopefully help them to take simple steps which will improve the quality of their lives as a result.”