Over half of 45-54year olds are saving for their retirement - are you?
New research from Phoenix Insights is shining a light on how this generation is planning to work towards their futures. Establishing how much money you might need in your retirement and taking the appropriate action to get there is always a good plan - so let’s learn a little bit more about how you can save for your future.
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00:00 When it comes to your retirement, you may see the adverts and read the articles, but
00:05 you might not know quite the path to take when working towards your future.
00:10 Now according to new research, 59% of those aged 45 to 54 have already taken action to
00:15 save more for retirement.
00:17 And these findings showed that the most common step this age group has already taken to boost
00:22 their retirement savings is to spend less money on holidays and luxury items.
00:26 Speaking to Head of Research, Analysis and Policy at Phoenix Insights, Patrick Thompson,
00:31 he said he considered that people do seem willing to reprioritise their current spending
00:35 to ensure they can support themselves in the future.
00:39 People on average save £88,000 into their pension pot, but to have a moderate level
00:45 of income in retirement, they'd need to save about another £160,000 by the time they retire.
00:50 So there is a bit of a gap there, but what we found, and I found really reassuring from
00:54 this research in particular, was that 6 out of 10 people in this age group were already
00:59 doing something to save more for their retirement.
01:02 For other people it was bigger things, it was thinking of moving to a higher paid job,
01:06 or it might be about downsizing a home if they no longer needed all the space.
01:10 So a range of things that people were doing, but I think positive in a lot of respects
01:14 that people were taking positive steps.
01:16 Based on Pensions and Lifetime Savings Association estimates, over £22,000 could be the minimum
01:22 standard of living in retirement, and it's thought a retired couple now need £19,900
01:27 a year in order to survive.
01:29 With research finding those aged 45-54 currently have £88,000 in savings, what measures should
01:36 we put in place?
01:37 There's some really good free information, advice and guidance out there.
01:41 So government provide free reviews of your pension, through PensionWise, from the age
01:46 of 50.
01:48 You can also check how much you might have saved up in terms of your National Insurance
01:52 contributions for your state pension as well, because we know the state pension is a really
01:56 important, crucial part of people's retirement savings, and that hopefully supplemented with
02:01 some of your private savings will be a really important thing for your future.
02:05 And then it's actually thinking about, at age 45-55, there's still a fair chunk of your
02:10 working life to go.
02:12 And often we talk to people and we do research and we find that people, they think they've
02:15 done the same job for all this time, that's who they are and that's what they can do.
02:19 We've heard some fantastic stories about how people can change careers, they can retrain,
02:23 upskill, it's definitely never too late to do that.
02:27 It doesn't help to worry about it.
02:29 It's good to think about it, and actually if you can learn a little bit more about where
02:34 your pension is, even how much you've got in it or the type of pension you have, that's
02:38 a fantastic first step.
02:40 But this is something, yeah, definitely across our whole lives that we need to be thinking
02:43 about.
02:44 It comes a bit more, a bit closer to home when you're reaching perhaps your mid-50s
02:49 and you're thinking actually, when I retire, isn't too far away, I've got this long to
02:52 save, I want to work for this much longer or not.
02:56 That's perhaps when it comes home a bit more and people take a lot more attention.
02:59 But thinking about it a little bit throughout your life, I would say certainly is a good