New research has found that misconceptions about retirement are preventing people from engaging with financial planning.
The research indicates that around 58% of people of working age in the UK find the depiction of retirement uninspiring and not indicative of the kind of lifestyle they would prefer to lead.
Retirement lifestyles are undeniably different and more varied than they might have been in the past, with more and more people committing to travel, start a business, explore new passions or remain in part-time work or education.
However, unaffordability and a lack of awareness can prevent people from suitable financial planning. This suggests that a cultural shift may be needed in how ageing is perceived and anticipated.
In total, around two thirds of people in the survey had no plans to consider their retirement until they were at least 40, creating the risk of a ‘too little, too late’ generation.
This has prompted the industry to consider three areas where attitudes to financial planning can be improved.
Firstly, people need to be motivated to think about their pension provision earlier in life, in part by addressing existing stereotypes of retirement. Secondly, under-saving in auto-enrolment workplace pension schemes needs to be tackled. Finally, too many people fear making the wrong financial decisions.
Are young people overwhelmed by the options available or ill-equipped from an early age to seek financial advice and guidance, and if so, how can this be overcome?
If you are starting to think about retirement planning in Cheshire and need bespoke local advice, contact our team at Hartey Wealth Management today to set up a consultation.
