Older Generation Not Ready For Retirement
Once people reach their 50’s, they are supposed to be able to think about starting to take it a bit easier and plan for their retirement in the near future. But a new report has shown that only around one in twenty people over the age of 55 feel as though they are ready for retirement.
The report from MGM Advantage, revealed that only 5 per cent of the population over 55 are comfortable about their retirement plans and many have not built up a sufficient savings pot, or pension plan to provide a suitable income in retirement.
Furthermore, a growing number of individuals are now approaching retirement with outstanding debts on home owner loans or mortgages, as well as personal loan and credit card debt, which places even more pressure on their retirement plans.
A large proportion of these individuals are planning to continue working well beyond their normal retirement date, due to the fact that they still have loan debts to repay and a lack of savings to fund their lifestyle.
Others who own their own home may consider selling up and down sizing, or taking out an equity release loan in order to help fund their retirement.
One of the main reasons for this lack of readiness is due to the effects of the credit crunch and recent recession, which has made a large hole in many peoples retirement plans, due to the low level of interest on their savings and in some cases, people being forced to borrow extra money on personal loans and credit cards in order to make ends meet.
A spokesman at MGM Advantage said “It is hugely worrying that so many people nearing retirement are unprepared for the financial implications of this stage of their lives.”
“Part of the problem is that relatively few people seek professional advice before they retire, but it’s crucial that people are extremely proactive in checking their finances at this time.”
