A new survey conducted by investment comparison site Investing Reviews has shed light on the sentiment of the UK population regarding pensions and retirement. The survey, which gathered opinions from over 2,000 users, aimed to better understand the nation's attitudes towards these important topics. The results revealed that a significant majority of respondents - 70% believe that retiring comfortably in the UK has become increasingly challenging.
Interestingly, the survey also found that 78% of respondents feel that the retirement age in the UK should be lowered. Currently standing at 66, the retirement age has been a subject of debate and discussion for many years. This sentiment aligns with the belief of around 70% of respondents who feel that it is now harder than ever to retire in the UK.
The survey results suggest that the desire for a lower retirement age and the perceived difficulty of retiring comfortably may be influenced by financial concerns. A notable 62.60% of respondents stated that their pension alone would not be sufficient to support a comfortable retirement. They believe that additional investments alongside their pension will be necessary. Moreover, more than half of the respondents - 55.82% - expressed their inability to make as many pension contributions as they would like to, which may contribute to their concerns about retirement.
When considering employer contributions, the survey revealed that over 42% of respondents would contemplate switching to a different career sector if it meant receiving greater contributions from their employers. This indicates a willingness among individuals to explore different avenues to secure a more robust pension for their retirement.
Investing Reviews CEO, Simon Jones, commented on the survey findings, highlighting the ongoing debates surrounding retirement ages and pensions in the UK. He pointed out that recent events in France, where tensions have escalated due to the increase in the retirement age from 62 to 64, added an additional layer to the discussion. Jones emphasised that the survey responses offer valuable insights into the British public's sentiments on pensions and retirement ages, particularly the growing belief that retiring comfortably has become more challenging. He further expressed interest in observing how factors such as the French backlash and the increasing cost-of-living crisis might shape these sentiments in the future.
In a related study, Investing Reviews analysed official government data from the Office for National Statistics (ONS) and found that the sector with the highest percentage of employers contributing 20% or more to employees' pensions is "public administration and defence (including compulsory social security)." On the other hand, employers in the "wholesale and retail trade (including motor vehicles and motorcycle repair)" sector had the lowest percentage of employer contributions of 20% or more, with only 1.3% falling in this category.
The survey also revealed that over a third of respondents do not have a clear understanding of the exact amount of money in their pensions. Furthermore, more than one-third of respondents expressed their belief that they will not be able to retire comfortably in the UK.
These survey results provide valuable insights into the sentiment of the UK population regarding retirement and pensions. It highlights the widespread belief that retiring comfortably has become increasingly difficult, along with the desire for a lower retirement age. The findings also emphasise the importance of additional investments alongside pensions and the impact of employer contributions on individuals' retirement planning.
