Cornwall LivingIssue #80

Retirement wealth – What’s the right answer for you?

While the increase in auto-enrolment (AE) workplace pension contributions will help people narrow the gap in their retirement savings, there are many who need to be doing more to ensure a comfortable retirement.

The research shows that 44% of people are not saving its recommended 12% of their yearly salary towards retirement [2], which is more than double the new minimum AE contribution of 5%.

In addition, the findings reveal that 51% of Britons expect to continue working at least part-time past retirement age, and 18% say it will be necessary.

Only a quarter expect to completely retire by 65. Young people are least hopeful of this, with only one in 20 of 18 to 24-year-olds expecting to retire by 65, but this doubles among 25 to 34-year-olds and triples among 35 to 44-year-olds.

18% say they’ll work longer than they want to because they worry about their level of savings. Just under a third of 25 to 54-year-olds worry they haven’t saved enough in their early years, and 39% of people fear running out of money completely in retirement.

Others worry about facing potential shortfalls due to policy change, with 37% citing concern about changes to the State Pension, such as a further increase to the retirement age.

Despite the majority of British adults recognising the need to work longer to prepare for retirement, a significant number have no contingency in place should they face increasing costs in later life. When told that people going into a nursing home can expect to pay an average of £866 per week, 22% said they’d never considered how they would cover this, and another 22% said they’d rely on the state.

However, more than three in five people say they are unsure what behaviour they would change to make up for increasing retirement spending. Only 12% say they will hold off drawing down their maximum pension allowance for as long as possible, and just 8% say they will forego leisure spending to prepare for retirement.

When you reach retirement age, you’ll want to make the most of it and keep your finances in good shape. Whether it’s saving for, or living in retirement, Harris Begley can help give you peace of mind with a financial plan that based on regular reviews aims to keep you on track. To discuss your individual circumstances, contact financial advisors Matt Begley or Steve Rusga.


The value of pensions and the income they produce can fall as well as rise. You may get back less than you invested. The Financial Conduct Authority does not regulate Auto Enrolment. 


Source data:

All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 3,535 adults. Fieldwork was undertaken between 17 and 22 January 2018. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).

[1] From 6 April 2018, the minimum contribution is 5%, with at least 2% from the employer; from 6 April 2019, the minimum contribution is 8%, with at least 3% from
the employer.

[2] 2017 Scottish Widows Retirement Report – 44% of people aged 30+ are not saving adequately
for retirement.