Lack of planning dampens retirement plans

Older people are worried that they won't be able to achieve their retirement goals because of a lack of financial planning, according to new research from Age UK Enterprises.

Despite having grand plans for their retirement - including holidays, home refurbishments and starting new hobbies - 29% of the over 60s questioned in the survey admitted that their retirement funds might not stretch to meet their expectations.

A further quarter admitted to feeling uncertain or negative about their current financial situation.
 
However, 81% of those who are pessimistic about their finances also believe that they didn't spend enough time planning for retirement.

Maximising savings

With tumbling annuity rates and poor returns on savings, securing a comfortable retirement has become an ever more challenging task - which is why Age UK believes it is crucial to give plenty of time and thought to planning your retirement finances.  

Gordon Morris, Managing Director Age UK Enterprises, advised: ‘For those at the point of retirement, comparing annuity rates can be one of the most significant ways to enhance income in the long-term. Purchasing an annuity is a once in a life time decision so it's crucial to shop around for the best rates and the right type of product.

'Customers should never simply accept the annuity offered by their pension provider, but check first if other companies offer higher rates or a product that better suits their needs.'

Other reasons for financial worries, stated in the survey, included the impact of the financial crisis and not earning enough money throughout a career to save for later life.