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One in five (20 per cent) people aged between 40 and 60 (mid-lifers) have concerns about their future retirement finances that are affecting their ability to do their job, according to research by Hymans Robertson Personal Wealth (HRPW).
Its study of mid-lifers found that many were worried about how they were going to finance their retirement, which HRPW said underscored the need for mid-life financial health checks.
Nearly half (41 per cent) of 40- to 60-year-olds were not confident that they will achieve their retirement plans.
However, 15 per cent admitted that, rather than taking action to alleviate these concerns, they “have their head in the sand” or have no approach to planning their finances.
More than a third (35 per cent) of respondents said that worrying about their retirement finances was having a negative impact on their mental health, while 27 per cent revealed they were losing sleep due to their concerns.
HRPW’s managing partner, Julie Hammerton, said: “Our research shows that this really is the ‘sandwich’ generation: A quarter said they were bearing the financial responsibilities for both their children and elderly parents,” Hammerton continued.
“This is also the generation that’s been squeezed on retirement savings, as most were born too late to benefit from generous defined benefit (DB) pensions and born too early to fully benefit from auto-enrolment. A significant number of those we surveyed know they’re not on track, as 41 per cent are not confident they’ll achieve their retirement plans.
“As a society, and as employers, if we wait until someone has the lightbulb moment that they don’t have enough to live off in retirement, by then it’s often too late. We need to intervene earlier, to give people time to course correct. Ideally this should be earlier than the midlife point.”
• If you need help to make sure you’re on track for the retirement you want, Wealth of Advice can help. We offer a wide range of impartial advice, always tailored to the individual client’s needs and circumstances. For a free copy of our guide Understanding Your Retirement Options, visit Free Guide: Your Retirement Options Explained | WoA (wealthofadvice.co.uk) Alternatively, contact us for a free, no-obligation consultation. Tel. 0191 384 1008 or email enquiries@wealthofadvice.co.uk
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