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Plan Members Wise Up to Retirement Planning

20 August 2012 (PLANSPONSOREurope.com) -Plan sponsors will be heartened to know that employees are taking the issue of retirement planning seriously.

Latest figures from unbiased.co.uk’s Advice Drivers report show personal retirement planning remains the number one advice trigger, with enquiries for that area of advice at 32% of all independent financial advice searches in July 2012.

Andy Zanelli, head of retirement planning, AXA Wealth, says:  “It is very well known that we are all living longer and as a result will be spending more time in retirement, a period that many wish to be ‘the longest holiday of their life’. However, many of us are not saving enough to fund the additional years we will be spending in retirement or to an income level that will match our aspirations. As a result, we are faced with the prospect of working longer or not having sufficient income to fund our twilight years.

 “An individual’s financial health in their later years will be shaped by what they have done in the early years, their long-term attitude toward saving and a clearly defined financial plan. It is reassuring to see that people are thinking about what their financial needs in retirement will be and seeking professional financial planning advice. In the next few years those who have significant legacy pensions will become fewer and the situation will become more acute. There will be fewer tax-payers and a greater proportion of tax may be needed to pay state benefits and public sector pensions. The pension time bomb is ticking and consumers need to be aware of the importance of long-term financial planning.”
 

PLANSPONSOREurope Staff
editors@plansponsoreurope.com





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