It comes as no surprise to find out that UK savers struggled to prioritise their pension in 2020, with over half (51%) saying they were unable to save sufficiently for the retirement they want and likely to review or reduce their pension contributions in the wake of the pandemic1.
It’s understandable why many people think of pension contributions as a drain on resources, when there are short-term priorities to think about. However, despite travel restrictions, Visit Britain estimated that Britons were still expected to spend £46.8bn on staycations last year. So why not think of your pension as saving up for holidays – just a bit later in life?
Planning for a long, healthy retirement
Life expectancy at birth is now 79.4 years for males and 83.1 years for females, according to Office for National Statistics (ONS) figures. Remember, this is just an average; in 2019, the number of people aged 90 and over rose by 3.6% to 605,181.
This means that many people are now spending 20 to 30 years in retirement – many of whom enjoy very good health due to improved living standards. So, you’re still likely to want to enjoy holidays, meals out and other treats when you retire!
Making your pension a priority
With so many demands on our income, it’s not surprising that many of us struggle to prioritise our pensions. We can help you balance your finances now and plan for the future, so you can make those holidays a reality in the future.
A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation. The value of investments and income from them may go down. You may not get back the original amount invested.