According to figures released this week, one in five workers aged over 50, which equates to almost 2 million people, will face having to work longer before they consider retirement because of implications caused by their children’s or parents’ financial needs. The report also underlines exactly why considering all your financial options strategically and in good time is so essential.
According to Aviva’s Real Retirement Report, more than a third (36%) of over-50s with dependants said they would retire later than they expected because their children were still financially dependant on them, whilst, nearly a quarter of over-50s with financial dependants (22%) said they had sacrificed their ability to save for a more comfortable retirement to support their adult children, while 12% had stopped saving completely to support their children and/or parents.
The insurer examined data from 3,327 UK adults aged 50 and over, of whom 1,829 were still working, and found more than two in five (43%) of those with dependants had concerns about being able to balance their work while caring for a relative.
The findings tie into a wider trend of people working longer – among those over-50 who have an expected retirement age in mind, 62% said they would retire older than they thought 10 years ago. Almost half (43%) of those retiring later than planned blame not having enough pension savings.
Having a healthy pension pot ready and waiting for your retirement is clearly the ideal situation – however, perfectly timed re-mortgaging, combined with insight provided by utilising financial future forecasting software can pay real dividends.
And even if there are family considerations to prioritise in the short term, understanding the implications of decisions made now on your financial wellbeing in your future will almost certainly give you an advantage further down the line.
Here at The Financial Planning Group we help individuals, families and businesses to place their financial affairs in context with their future goals and aspirations. We provide a simple, structured, disciplined and reviewable planning service. We will change the fundamental relationship people have with their money to give them confidence and clarity in their own future.
If you would like to arrange a pension or investment consultation, please call Tim Norris or Alan Clifton on 0800 731 7614 and we would be delighted to arrange a meeting at our offices in the heart of Teddington.