MSE News: Generation 'not saving for retirement'

in Savings & Investments
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This is the discussion thread for the following MSE News Story:

"The majority of Brits do not have a financial plan to ensure they have a sufficient retirement income, says HSBC ..."
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  • Ken68Ken68 Forumite
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    Just another plug for the pension industry. Better for this statement to have come from an impartial HONEST source, but from a BANK.
  • DawnCBUkDawnCBUk Forumite
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    Wow! I can't believe this : "The research found people who are planning for their retirement had saved an average of £123,000, more than double the UK average of £53,000, while those who were not planning had set aside just £28,000."

    I'm only 36 and I've got more than that saved for retirement already in a pension and property. Even with compound interest in order to have £40k a year to live on for retirement at 67 I will need something like a £2 MILLION pound pension pot. I'm not relying on there being ANY money left for my NI contributions in a state pension. With people living into their 100's this is terrifying! I don't want to leave my children or grandchildren with nothing.

    Dawn
  • dunstonhdunstonh Forumite
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    You dont have to just apply it to retirement planning. You can also apply it to short and medium term savings.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • evespikeyevespikey Forumite
    106 Posts
    If savings are bad now, they're going to fall again dramatically with the next generation of students paying 9k fees.
    (even though future grads don't 'have' to start paying it back until they're earing over a certain amount, it makes sense to pay earlier, [assuming no other debts] as the later they pay it back, the more they owe).
    Wins: my987wardrobe dress, Look show tickets! Seamus Heaney poetry collection, 9bar sample pack, palmolive large bottle, La Dolche Vita show tickets, Dorset cereals, 2xTim Minchin tickets, etsy necklace
  • Generation 'not saving for retirement' because generation 'can't bloody afford it'!
    Sum quod sum.
  • ThrugelmirThrugelmir Forumite
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    Generation 'not saving for retirement' because generation 'can't bloody afford it'!

    Like everything in life its a choice to save or not. Regular saving over 40 years does mount up.
    Real insurance claim quote : -

    "Going to work at 7am this morning I drove out of my drive straight into a bus. The bus was 5 minutes early.".
  • bendixbendix Forumite
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    Generation 'not saving for retirement' because generation 'can't bloody afford it'!

    Generation can still afford one or two overseas holidays a year, luxury consumer goods and meals out regularly.

    It's a question of priorities, isnt it?
  • ILWILW
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    Current policy seems to be to inflate away savings, so why bother?
  • ReaperReaper Forumite
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    This is indeed soemthing to worry about. A lot.

    I don't think people have grasped yet that longer life spans and feeble, unreliable, state pensions mean they need to save up a great deal.

    I was guilty of this in the past too. Vaguely thinking my company schemes would cover it wheras they often made me wait years before allowing me to join and then I switched jobs soon after.

    I now put about a third of my income into a pension and wish I had started much sooner.

    To avoid the same thing happening to my newborn I have started a child pension. Small contibutions over a long period are vastly more effective than large sums late in life.

    P.S. Why is this in the Savings board not Pensions?
  • ViolaLassViolaLass Forumite
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    evespikey wrote: »
    ...even though future grads don't 'have' to start paying it back until they're earing over a certain amount, it makes sense to pay earlier, [assuming no other debts] as the later they pay it back, the more they owe.

    Not necessarily. Not everyone will have the same interest rate and there may be early repayment penalties.
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