55 -64-year-olds are less certain about their future than in previous years, with those over 55 more likely to be concerned about the rising cost of living.
A lot of us are uncertain of what to be expecting when it comes to making plans to look ahead. Research after research has revealed that a lot of us aren’t certain if we’ll be able to retire comfortably. It’s becoming more difficult for people to be confident regarding retiring.
People who are retired
Recent research has revealed interesting insights into the fears, hopes, and goals of those who are approaching or retiring. The amount your retirement will cost you depends on your personal circumstances and lifestyle, which means it will differ for every person. However, it could be more expensive than you think. The concerns about inflation have been increasing since the summer of last year and increasing costs can be a concern for retirees.
The study also found that 33 percent of UK adults are concerned about the rising cost of everyday things, which is up from 27 percent at the end of September in 2021. Over 55-year-olds (36 percent) are the most likely (of all age categories) to be concerned about the increasing cost of everyday items.
Prices rising
Women (40 percent) are more concerned about the rising cost of living than males (26 percent). Retirement confidence is also declining for those over 55. The percentage of those over 55 who feel confident about their retirement has decreased over the past year.
As of December 20, 2021, 40% of those aged between 55 to 64 (who were not yet retired) declared they were confident that they had saved enough money for an enjoyable retirement, as contrasted with 44 percent in December 2020.
A comfortable retirement
55% of people over 65 (who were not yet retired) believe they’ve saved enough money for retirement as compared to 60 percent by the end of December. Women (35 percent) are less likely than males (52 percent) to feel confident regarding their retirement plans.
However, people who are mass-affluent who have assets between £100,000 and £500,000 with no properties – are more likely to feel confident about their retirement. About 71% of the population with a high income is convinced that they’ve saved enough money to enjoy an enjoyable retirement, in contrast to just 43 percent of the population overall.
Purchasing power
The percentage of mass-affluent consumers who are optimistic about their retirement has also increased from 60 percent in December 2020 to 71% in December 2020. Research has revealed that a significant portion (84 percent) of this population saved funds during the COVID epidemic. One in five (20 percent) wealthy people said their households saved more than £10,000. Most of this group are most likely to put the savings into a retirement account (8 percent vs. 5 percent of the UK adult population).
People with fixed incomes are likely to be able to see the purchasing power of their earnings decrease. People who draw income from their pension funds could have to take more funds from their accounts than they had anticipated, which could increase the chance of not having enough funds when they retire.
Wary of investors
One reason that over-55s are more concerned about inflation is that they tend to have a higher portion of their savings deposits that aren’t in line with the rising costs. Wealthier households are likely to be more secure because they have more of their savings in tangible assets, such as real estate and equities, that have increased in value over the last few years.
Rising inflation can be a problem for cautious investors. They’re generally uneasy with the fluctuation that investing in funds based on the stock market could bring, but they are worried that their savings will fail to keep up with the increasing prices. A possible solution is an investment fund that is invested in various investments but also can help smooth the fluctuations of the stock market.
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Source data:
1. LV= Wealth and Wellbeing Monitor is an annual survey of more than 4,000 consumers who examine their views on savings, spending, and retirement. The LV= survey surveyed more than 4,000 nationwide representative UK adults through an online omnibus conducted through Opinium in December 2021.
