News & Views

Retirement Maze: The Alarming Lack of Financial Plans

Introduction:

Embarking on the golden years of retirement should ideally be a time of relaxation and fulfilment. However, a recent report from Just Group* sheds light on a concerning trend – nearly half of retirees (49%) entered retirement without a clear financial plan. The study underscores the importance of financial preparation and seeks to address the various factors contributing to this lack of foresight.

Key Findings:

1. Absence of Financial Planning

– Shockingly, 49% of retirees had no concrete financial plan for their post-work years.

– 35% retired without conducting any financial assessment of their ability to afford retirement.

– 14% were forced into early retirement, running out of time to make financial plans.

2. Limited Use of Financial Advisers

– Less than 10% (8%) sought the help of an independent financial adviser.

– Just 6% utilised Pension Wise, the government-backed pension guidance service.

3. DIY Approaches and Informal Help

– 34% took a DIY approach, conducting a full review of their savings and assessing income and expenses.

– 10% sought informal help from friends and family.

– 6% explored alternative sources of support.

The report serves as a wake-up call, highlighting the pervasive lack of financial planning among retirees. As retirement approaches, seeking professional financial planning and advice and utilising available resources become crucial steps in securing a stable and enjoyable post-work life.

As we navigate the ever-evolving landscape of personal finance, it’s crucial to stay proactive and informed about your financial well-being. Your financial goals are the compass guiding your journey, and Wells Gibson is here to ensure you have the tools and support needed to reach them.

Your financial journey is a collaborative effort and we’re committed to providing the guidance and support you need. Your financial success is our priority, please reach out to the Wells Gibson team if you wish to discuss any matters in relation to this article.

* Just Group surveyed 1,050 UK adults over 55 between 17 and 27 August.