The Equity Release Council’s poll of 1,000 UK adults identified five personality types when it comes to financial planning for later life.
Those struggling to save fall into three categories: one in three (30%) are ‘hassled and overstretched’. Nearly one in five (19%) are ‘in denial’ about the issue and a further 16% are ‘lost and confused’ about the steps they need to take.
Just 16% of adults show signs of being ‘savvy and sorted’ by taking a conscientious approach to saving for retirement. A further fifth (19%) are ‘cautious optimists’ who appreciate the need for action and are confident they still have time to prepare.
The Council’s research also revealed nearly one in ten (8%) believe they will eventually have to sell their homes as they will no longer be able to afford to live there in retirement.
Meanwhile with limited access to the property ladder, almost one in five (18%) doubt whether they will even own their own homes by retirement. Nearly one in three (32%) adults see their home as a potential financial asset.
Nigel Waterson, chairman of the Equity Release Council (pictured) said: “When people’s budgets are under pressure right now, it is perfectly understandable why many prefer to focus on the present and not dwell too much on their financial future, especially if their outlook for retirement is less than sunny.
“Unfortunately, that inaction could prove costly in later life. Seeking out professional advice on a range of retirement products – from pensions and annuities to equity release – can help to identify the best way to make their financial assets work for them in later life.”
