How will you fund your retirement?
An estimated five million people are relying on an inheritance pay-out to fund their retirement, according to research from The Share Centre.
This is despite the fact that the recent pension reforms offer savers more flexibility when it comes to funding their retirement. Over one in 10 (11%) are instead hoping they’ll be in line for an inheritance to do the job for them.
No plan in place
A worrying 10% of people also state they currently have no methods in place when it comes to saving for retirement.
Of those who are putting money away for retirement, more than half – 53% – simply top up their main savings method, while 40% additionally contribute to a cash ISA (40%) and 39% have a workplace pension scheme.
Richard Stone, chief executive of The Share Centre, said: “Holding out for a pot of money that isn’t necessarily guaranteed is a very risky game to play, and people need to take control of their long term savings to be sure it will come through. Even if you are left a healthy inheritance it’s unlikely to fund your whole retirement which could last 30 years or more. Indeed with increased life expectancy more and more individuals will have already retired before they inherit, to say nothing of where this approach will leave the next generation.”