An article published this month on AOL Money UK highlighted the comfortable retirement enjoyed by pensioners in 2015. The piece dispelled the misconception that pensioners are in dire financial straits, struggling to make ends meet – suggesting that they’re actually in an enviable position where money is concerned.
A study cited in AOL’s article, conducted by the Institute for Fiscal Studies, demonstrated that pensioners have actually seen greater income growth over the last 30 years than the rest of society – thanks in no small part to their sizeable occupational pensions. What studies like this highlight is the importance of planning for retirement as early as possible to secure your own financial safety regardless of the economic climate.
Pensions, Property & Politics
The article, written by financial journalist Sarah Coles, illustrates the variety of financial and political factors responsible for the generation’s comfortable situation – with a particular look at the generous workplace pensions implemented throughout the 60s, 70s and 80s. Today’s pensioners are reaping the rewards of the ‘right place, right time’ phenomenon – enjoying pension schemes that are enviable to subsequent generations, who will need to commit to diligent financial planning to experience the same comfort later in life.
Coles also indicates that the property landscape is looking good for the pensioners of today, with a quarter of all UK property owned by the UK’s 60-something population. A study last year from Prudential found that one in ten pensioners’ households are worth over £1m, and pensioners as a whole own a staggering £800 billion worth of property – demonstrating the enormous effect of the property boom over the last several decades.
Politically speaking, pensioners are the most reliable voters in UK society – so it’s no surprise that political parties have prioritised their financial security. In fact, the Institute of Directors has revealed that the average UK pensioner is now wealthier than 40% of the British population – a result of several political and economic factors in perfect alignment.
The only concern, following this revelation, is that the future may not be so secure for the next generation of pensioners, or the one after that. A recent post by the Financial Times revealed that almost a third of people approaching retirement age have neglected to save for their later years. This highlights the incredible importance of pragmatic retirement planning – helping you to guarantee a stable financial future for yourself.
If you’d like to enjoy a comfortable retirement, strategic retirement planning is the way to get there. At Vital Wealth Management, our independent financial advisors know what it means to our clients to feel financially secure – we can help you to create a life plan with smart goal setting and teach you how to achieve those goals through financial planning.