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Sense Check at 60

Sun Life of Canada have recently commissioned a study on the retirement needs of the mass affluent “Sense Check at 60”.

The report explores how well prepared this group of people are for retirement and how much planning they’ve put into their retirement. It examines the nature of risk in retirement and defines the key risks people face managing their pension savings. 

Here are some of the key findings from the report:

• Almost half (49%) expect to generate between £20,000 – £40,000 from their pension and other savings (21% expect an income of over £50,000).

• Yet 59% of respondents have less than £300K and 33% less than £200K saved. So their expectations of likely income from their pension savings are unrealistic.

• Around 4 in 10 people in our survey expect to work after retirement (another 19% are undecided).

Sun Life of Canada have recently commissioned a study on the retirement needs of the mass affluent “Sense Check at 60”.

The report explores how well prepared this group of people are for retirement and how much planning they’ve put into their retirement. It examines the nature of risk in retirement and defines the key risks people face managing their pension savings. 

Here are some of the key findings from the report:

• Almost half (49%) expect to generate between £20,000 – £40,000 from their pension and other savings (21% expect an income of over £50,000).

• Yet 59% of respondents have less than £300K and 33% less than £200K saved. So their expectations of likely income from their pension savings are unrealistic.

• Around 4 in 10 people in our survey expect to work after retirement (another 19% are undecided).

• Three quarters of our survey believe retirement planning is more complex these days and 65% agreed that financial services companies need to help remove the fear around it.

• Almost 70% had seen an adviser in the last two years – but of those who hadn’t nearly 1 in 5 cited a lack of trust as the reason

• Trust in the financial services industry is a major issue.

• Attitudes to risk differ, but generally people become more cautious in retirement.

• Inflation was considered the greatest financial risk in retirement, yet many struggled to sacrifice income today to combat inflation in the future.

• Most aren’t planning to put money aside to fund the costs of long term care (our analysis suggests they may be right to take this approach).

• As people develop a deeper understanding of the risks they face in retirement, the more likely they are to value guarantees.

• Products that recognise the uncertainties around retirement, and are flexible enough to adapt to changes in circumstances, are popular.

 To read the full report click here

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