Redundancy threatens late pension surge
Research by HSBC has shown that substantial numbers of employees in the UK are part of the ‘Ostrich Generation’, who refuse to undertake any financial planning for their retirement.
However, any ‘ostriches’ hoping to saving the bulk of their pension fund in the last ten years of their working life could be in for a shock, as a report by Aviva demonstrates that over 25 percent of over 55s are currently not in employment due to redundancy or ill health.
Once those aged over 55 are out of work, it is harder for them to find a job than earlier in life, according to 74 percent of respondents. As a result, more than a third (34 percent) found they had to scrimp more than expected in retirement due to their careers ending ahead of plan.
With the government determined to increase the pension age to 66 in 2020, individuals will be forced to wait longer for assistance from the state, making them more reliant on private pension funds. Consequently, it is to be hoped that those taking an ostrich approach to their financial future will soon become an endangered species.
For more information on Retirement Planning or any other aspect of Financial Planning contact Paul Smith or Richard Mills at Watson Buckle Wealth Management on 01274 516700.
