Mortgage News
Half failing to save for retirement
Almost half of people are not saving any money towards retirement, despite 63% expecting to live on more than £15,000 a year, according to research.
A study by the Equity Release Solicitors’ Alliance (ERSA) revealed that people are saving on average £148 a month towards retirement, despite savings being listed as one of people’s top three expected sources of income after private and state pensions.
Of those considering equity release, just 25% said it would be in their top three income sources.
ERSA revealed that just 27% of people think their current retirement planning will cover their expected income.
Claire Barker, chairman of ERSA, said: “While there was some awareness of the problem, there is a clear opportunity for financial advisers to initiate conversations with clients to discuss this and to help them plan for their future.”
She added: “While people need to save for their retirement, equity release is a valuable financial planning tool that can be used to address many different needs in retirement, supplementing income and helping meet unforeseen expenses.”
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