Have you Really Planned for your Retirement?

Many people I speak with on a day to day basis, explain to me that they have money aside to cover retirement. However, today I want to run through if this really is the case.

The harsh reality is many people across the globe, tend to overestimate what they are entitled to receive for retirement. Whether this is from a State Pension, Company Pension or Investments geared towards growth.

To give you some statistics, in the 2020 Great British Retirement Survey published by Interactive Investor, I discovered some concerning truths:

• Over 70% of the UK population base their retirement calculations on a NET return of 5%+ p/a
• 1/8 people base their calculation on a NET return of 10%+ p/a

The sad truth behind this, is that the UK and Europe have suffered from low interest rates way before COVID 19. However, since the pandemic we have watched interest rates plummet to a flat 0%. As many pensions are now designed to stay low risk, they tend to be diversified between more secure, but lower yield investments such as; Treasury Bills & GILTS. This unfortunately means that many people will actually be receiving between 0-2%p/a, compared to the 5-10% they expect. Leaving a large shortfall in many people's retirement plans.

In this survey, it also stated that:

• 25% of UK nationals will have to delay retirement to an older age
• Out of that 25%, 1/4 of these people were worried they would NEVER have enough money to retire and have to work for LIFE

According to the Retirement Living Standard (created by the Pension and Lifetime Savings Association), this below image displays the minimum, moderate and comfortable amount needed for retirement.

This table alone, shows the clear severity of the issue. Considering many Brits do not even have enough in their pension to meet the minimum living requirements.

But, what to do next?

At deVere we specialise in helping people take back control of their financial future, by providing them with realistic and clear facts and figures.

To run through a complimentary financial review and see how close you are to your retirement goals, please book in a meeting with me using the link below.

If you have any questions, or require any further information please reach out to me using the below details.