1 in 3 adults struggle to plan more than four years ahead
One in three UK adults admit they find it difficult to look more than four years ahead when it comes to planning for their financial future, research has found.
A study of over 3,000 people carried out by investment specialist Standard Life has found that 33% of adults cannot picture themselves or their financial needs beyond 2020, meaning many millions could be failing to set aside enough for their retirement.
The same study also established that 7 in 10 (71%) working adults are unable to picture themselves in retirement, while a worrying 19% of young adults say they look no further ahead than one year when it comes to planning and managing their finances.
If you want a firmer understanding of your financial situation or are looking for ways to make your money go further, speaking to an IFA can help.
We spoke to Merseyside-based IFA Sean McDermott to get a better understanding of why many find it difficult to plan for their long-term financial needs.
“Many young people that I know personally or come to me as new clients are happy to seek advice, but generally they only do so to get their short-term finances in order.
“Some still have outstanding unsecured debts from their student days or have recently got married, and just want to tidy up their financial situation. Some are desperately trying to build up a 5-15% deposit to get a first step on the property ladder.
“Many are now starting to have families and feel that prioritising for day to day living costs or short-term investments is more pressing than putting money towards something long-term, such as a pension.
“Unfortunately, even many of those that are clued-up on the importance of having a pension are unaware of how much money is required to live comfortably in retirement, and without financial assistance could end up saving nowhere near what is needed to provide a decent standard of living post-employment.
“Even after explaining the tax relief benefits of paying into a pension, many younger people still feel they can just keep putting it off until they earn more or have less debt. Unfortunately, the cost of this delay is massive, especially when you consider that many fail to save enough anyway.”