Intelligent SME.tech Issue 43 | Page 59

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ALMOST HALF OF BRITONS BELIEVE THEY WILL RETIRE BEFORE THE CURRENT RETIREMENT AGE

Research by SmartSave , a Chetwood Financial company , has found that more than two in five UK adults believe they will leave the workplace either at the current retirement age ( 66 , rising to 67 in 2026 ) or before , despite many of them not having a clear financial plan in place for retirement .

The digital bank commissioned an independent , nationally representative survey of 2,000 UK adults , which reveals that only 54 % of those planning an early retirement have a clear financial plan in place , dropping further ( 48 %) among 55-year-olds and above . This falls to 28 % among those who plan to retire later .
More than a third ( 37 %) of early retirement hopefuls said that they don ’ t know how many pension pots they have and how much is in them , increasing to 49 % among later retirees .
Over two-fifths ( 43 %) of those surveyed were prompted to contribute more to their retirement savings by rising interest rates , with over half ( 52 %)

THE RESEARCH SEEMS TO SUGGEST THAT THERE IS A KNOWLEDGE GAP BETWEEN SAVERS ’ EXPECTATIONS FOR RETIREMENT AND THEIR REALISTIC PROSPECTS .
planning to finance their retirement by relying primarily on their workplace pension .
Of the 44 % planning to retire by 66 , 58 % still plan to work in some capacity – freelance , part time or contractor – after retirement .
Andy Mielczarek , Founder and CEO of SmartSave , said : “ While many Britons hope to start enjoying retirement at the earliest opportunity , it is clear that those expectations might be a little unrealistic for those who don ’ t plan ahead .
“ The research seems to suggest that there is a knowledge gap between savers ’ expectations for retirement and their realistic prospects . Nobody can afford to sleepwalk through preparing for later life , and Britons need to arm themselves with all the tools and resources at their disposal to secure for themselves the brightest possible future . Having a robust long-term strategy , checking up on pension pots regularly and taking advantage of the best savings rates on the market can provide the leg up that these people need .
“ The financial sector needs to do more to educate people about their financial wellbeing . Working with savers to help them fully understand their finances and establish healthy , lasting saving habits is an imperative for financial institutions , all of whom have a responsibility to help their customers make their retirement dreams possible .” �
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