A rose-tinted future?

Many people in the UK may have a rose-tinted view of their financial futures, according to research by AEGON. The survey has identified a ‘reality gap’ between what people are expecting in their retirement and what they are actually saving for.

Malcolm Flanders, Director of Individual Pensions at AEGON said: “Many people are still expecting to retire before age 65 and lead a comfortable lifestyle. The fact is a large swathe of the UK population risks being financially impoverished in retirement. Our survey suggests that many people are still expecting to rely solely on state benefits, or are gambling on the prospect of their children taking care of them. But we believe it’s important that people take action now and plan sensibly for their retirement.”

It’s not just retirement planning that revealed worrying results. When asked about critical illness and life insurance, nearly 40% said they thought protection products are too expensive.

Flanders said: “The perception that protection policies are too expensive is simply not true. People can buy some valuable protection for £10 or £20 a month. The more likely reason people are not buying enough protection is because they don’t like to think about their own mortality. Our industry must try and get the message across that protection is the bedrock of sound financial planning – and affordable too.”

Despite many people acknowledging they are not saving enough to secure a brighter future, the research also found that one third of those surveyed would not seek financial advice on pensions, investments and protection.

Flanders concludes: “We need to take off our rose-tinted glasses take responsibility for properly planning our financial futures. We would urge people to act now before it’s too late and take control of your financial future.”