Family pressures (& the impact on pension savings)

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A report from the Centre for the Modern Family out last week presents some interesting – and perhaps rather worrying – findings.

The report focuses on the changing shape and expectations of the UK family unit.  Perhaps the principal change is that people are living longer, and therefore their retirement savings need to go further (quite a lot further in fact, as male life expectancy has increased by an entire decade since 1970).

So it has become ever more important to have adequate retirement savings.  Yet the report also suggests that some savers are now feeling pressurised by the new pension freedoms.  27% of Britons believe that savers will be put under pressure to use pensions savings to help struggling family members – and if they do that how will they fund their own retirement?

Of course many expect to receive an inheritance to help with their retirement savings and planning – yet this option also appears to be diminishing with only 9% of those surveyed expecting to pass on their home to their children.  This is a very low figure, and probably reflects a combination of circumstances (longer retirements, low levels of retirement savings, and an increasing need to fund for long term care).

So this report may be a useful wake up call to many – and certainly highlights the need for both greater pension savings throughout working life and better financial education as well.  Please speak to your usual Jelf consultant for more information on either of the above.

Best regards

Steve

Wellbeing at WorkInternationalProtection/RiskWorkplace Pensions and SavingsWorkplace Benefits Platform

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About the author

Steve Herbert is an award-winning thought leader on Pensions and Employee Benefit issues. His principal aim is better communicating the value and usage of employee benefits to employers. This he has achieved through many (highly successful) seminar series over the last decade, and his regular and widely read blog posts on the subject.
He also acts as a judge in HR and Employee Benefits industry awards, article writer, and product innovator. Steve is a regular contributor to DWP forums and compulsive responder to formal Government Consultations on pension and employee benefit issues. He is occasionally accused of making employee benefits interesting.