A recent survey conducted by Investing Reviews - an investment comparison site - has shed light on the sentiments and attitudes of over 2,000 UK citizens regarding retirement, pensions and investments. This comprehensive survey comes at a time when debates over retirement ages are intensifying not only in the UK but also in neighbouring countries like France. The findings are both revealing, offering a glimpse into the challenges and aspirations of UK citizens as they plan for their retirement years.
One of the standout findings from the survey is the significant desire among UK workers to lower the retirement age. Currently set at 66, this age threshold has come under scrutiny, with 68.71% of respondents expressing their belief that it should be decreased. This sentiment is noteworthy, given the ongoing protests in France against raising the retirement age from 62 to 64, highlighting a broader European concern about when one should retire.
Despite the desire to retire earlier, UK citizens face numerous challenges when it comes to ensuring a comfortable retirement. A staggering 71.16% of respondents believe that retiring in the UK has become more challenging than ever before. This perception is compounded by the fact that 62.60% of those surveyed do not think their pension alone will be sufficient to retire comfortably, prompting many to consider the need for additional investments.
The survey also underscores the frustration felt by UK workers regarding their pension contributions. Over half (55.82%) feel that they are unable to contribute as much to their pensions as they would like, leaving them with concerns about their financial security in retirement. Interestingly, 42.66% of respondents stated that they would consider switching to an entirely different career sector if it offered greater employer contributions to their pensions.
Delving deeper into sector-specific data, Investing Reviews previously analysed government data from the Office for National Statistics (ONS) to identify trends in employer pension contributions. The results showed that the 'public administration and defence (including compulsory social security)' sector has the highest percentage of employers contributing 20% or more to employees' pensions. Conversely, the 'wholesale and retail trade (including motor vehicles and motorcycle repair)' sector had the lowest percentage, with only 1.3% of employers making such contributions.
Another concerning finding from the survey is the lack of awareness among UK citizens about their own pension savings. A significant 34.93% of respondents admitted to not knowing exactly how much money is in their pension fund. This knowledge gap could have serious consequences for individuals' retirement planning and financial well-being.
Perhaps the most striking revelation of the survey is the desire among 42.66% of respondents to retire outside of the UK if given the opportunity. This aspiration raises questions about the challenges of keeping up with the increasing rate of inflation and the cost of living, factors that retirees must contend with when remaining in the UK.
The Investing Reviews survey provides a comprehensive snapshot of the UK's sentiment surrounding retirement, pensions and investments. It highlights a strong desire to lower the retirement age, concerns about the ability to retire comfortably, and the need for additional investments. It also underscores the importance of employer contributions and the knowledge gap regarding pension savings. The dream of retiring abroad serves as a poignant reminder of the financial challenges faced by many UK citizens as they plan for their golden years.
