Positive results in Scottish Widows’ annual Retirement Planning Report but women, divorcees and those in their 40s still underprepared
The new Scottish Widows Retirement Report 2016 indicates favourable attitudes to saving and retirement planning, with more than half (56%) of the nation now saving adequately for retirement.
Auto-enrolment has also seen positive results, with 40% of those surveyed saying they now save into a pension because they were automatically enrolled by their employer.
But significant groups are still not adequately preparing for retirement.
Women remain more engaged in other financial issues, with retirement planning viewed as non-urgent and less immediately rewarding. Almost three-quarters of women surveyed do not know how much they need to save in order to achieve their level of income in retirement.
The over 40s group was the most negative about their long-term finances and are saving less. 37% are looking after children and cannot save.
For divorcees, 49% are unable to save more in the coming year. Three-quarters of those surveyed said they did not discuss pensions as part of their divorce settlement – a scenario that is significantly more common for women (79%) than men (64%).
Other findings include the effects of Brexit, the need for life-long financial education, and a correspondingly low take up of professional advice.
At Independent Women, we see this data as positive and constructive – an encouragement to take action. More than ever, the report highlights the value in having independent, professional advice to plan adequately for the future.
Whatever stage you are at, it is always worthwhile discussing your retirement plan. Even small steps can make a big difference towards the end result.
To read the full report, click here