This number equates to 2.4 million people UK wide who are primarily focused on paying for the ‘here and now’, with retirement planning and saving close to the bottom of their list of financial priorities. With house prices rocketing and many at an age when they are considering or have started a family, other life-stage finances are their main priority.
When asked to consider their financial position, the survey of nearly 2,500 people aged 35-44 across the UK, identified two clear groups. Over a third (34%) considered themselves 'squeezed' where keeping up with bills and repayments is a constant struggle, while another 37% said that their finances are manageable, as they struggle with their finances from time to time. In addition to these two groups, nearly a quarter (23%) said they consider themselves comfortable as they are able to keep up with payments without difficulty. The remainder said that their current financial situation is unmanageable, (6%).
Worryingly, over two thirds (68%) of the Squeezed group say that they can’t currently afford to save more for their retirement and over four fifths (83%) of this group believe that their finances will feel squeezed or even unmanageable in their retirement. Nearly two thirds (61%) of the squeezed group say that it is very likely or somewhat likely they will retire later, expecting to do so at an average age of 68, three years later than the current state pension age of 65.
Fiona Tait, Pensions Specialist, Royal London said:
“Planning for retirement is becoming an increasing concern for many as the reality hits that financial responsibility is shifting from the state to the individual.”
“What is promising is that nine in ten (92%) understood that they should be saving and investing, but with cost of living and other lifestyle priorities those who said that they need to save more over half (54%) said they just can’t afford to do so. Finding ways to help them achieve a step change to improve their position is key; if left to do nothing, many believe they will either remain squeezed in retirement or worse, be in the position where their finances are unmanageable and rely on state benefits.”
