Brits urged to plan for retirement

Only one in four (27 per cent) are confident that their pension will provide enough income in their retirement, despite 59 per cent of adults in Britain having a company or private pension in place, according to research by GE Money and MoneyBasics.co.uk.

The research, conducted by YouGov, examines the pension and retirement plans of over 3,000 adults from major cities across Britain, at a time when the value of investments are falling and living costs are rising.

18-24 year olds are least likely to have made pension provisions, with just 17 per cent having pensions in place and almost half admitting that they have not thought about setting up a pension (47 per cent).

Martyn Beauchamp, chief marketing officer, GE Money, comments, "Unsurprisingly young people have made the least provision for retirement, but escalating living costs, difficulties getting on the property ladder and often crippling student debts mean they may be unable to build the securities that previous generations have, and be at even greater risk of a retirement shortfall."

Martyn continues, "Retirement is a key life stage that requires early financial planning. Good financial management and being able to plan and save for the future is an important part of maintaining the family finances. The message is clear - it is never too early to start planning for your retirement and how to fund it."

The survey also revealed that men are more likely than women to have a pension in place (64 per cent compared to 55 per cent) and are more confident that their pension will provide them with enough income in their retirement (35 per cent compared to only 18 per cent). It is this concern that makes financial planning and consideration of other retirement income options crucial.

Confidence over the financial future is reflected across the age groups. Of those with a pension under the retirement age, the 35-44 year age group are marginally more sceptical about their pensions providing sufficient retirement income with only 19 per cent believing it will see them through. Those nearing retirement age with a pension in place (55 to 64 year olds) are the most confident with their pension provisions at 45 per cent.

While today's pensioners are more confident than the younger age groups, only 60 per cent of those aged 65+ with a pension in place believe that it will provide enough income throughout retirement.

Chris Tapp, director of Credit Action adds: "It can be difficult for people of any age to keep money matters under control, particularly young people fighting a barrage of tough financial issues.

"With today's research showing how concerned younger Britons are about their retirement, the rest of the population could benefit from addressing money matters now too ensure too can really enjoy their retirement. A little effort now can save a lot of money later."

As part of its series of free advice guides to help people stay in control of their finances, GE Money and MoneyBasics have launched a ‘retirees' advice guide'. The retirees' advice guide is free to download from MoneyBasics (moneybasics.co.uk) a money advice website provided by GE Money - in partnership with the Consumer Credit Counselling Service and Credit Action.