The research conducted by MoneySuperMarket has found that most people have no idea how much they need to save to live a comfortable life in the future and worryingly nearly half are not considering buying life insurance to protect their dependants from debt and provide for their financial needs.
The research, carried out between January and February last year, was based on 1,000 respondents. It used an interactive tool which people could use to see how prepared they are compared to their demographic, with results tailored by the user’s age and gender.
MoneySuperMarket said the average Brit needs £370,000 to retire, based on £26,000 a year to live off. However, the survey results revealed that: Millennials, aged 18 to 34, underestimate this figure by £213,400; Over a quarter (26 percent) of respondents of all ages don’t have a pension; 34 percent of millennials are not enrolled in a pension scheme at all.
The research also found there is a pension gender gap in the UK, with women found to both be less likely than men to have a pension, and also have a more unclear understanding of how much their pension was actually valued at.
Whilst millennials were shown to be the least knowledgeable, there was also found to be a high lack of knowledge across all age groups – including those aged over 55.
The research found over 55s underestimated the amount needed for retirement by more than £145,000, and 20 percent of over 55s are not enrolled in a pension scheme.
A MoneySuperMarket spokesperson said,
Brits face all sorts of calls on their money and it’s easy to see why the cost of everyday living can trump longer-term objectives such as saving for retirement – especially if you’re not fully aware of how much you’ll need in retirement. But anyone who can get into the savings habit gives themselves a better chance of building up the sort of pension kitty that’s needed to fund a comfortable lifestyle once they stop work.