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10 years to save your retirement
Peter Carter, Head of Product Marketing, MetLife
Plunging stock markets, rock-bottom interest rates and falling annuity rates have combined in a toxic mix which is threatening to wreck the retirement plans of millions.
Independent financial advisers will be wearily familiar with the fact that the word "pensions" is now almost always accompanied by the word "crisis" with analysts, financial commentators and even pension providers competing to paint as bleak a picture as possible of the prospects for retirement in the UK.
It is clear that providers need to work harder in support of independent financial advisers to offer retirement saving solutions which deliver what they promise.
That is why MetLife has launched its 10 Years to Save Your Retirement report available at www.metlife.co.uk with a foreword by former Cabinet Minister and founder chairman of AIFA Lord Hunt of Wirral based on exclusive research among 50-plus workers and financial advisers.
It shows advisers already receive substantial business from the over-50s market:
Part of the answer may be saving more in the years that remain while other answers include changing an investment strategy or looking to add a guarantee on capital or income.
MetLife believes IFAs have a crucial role to play in helping save retirement for millions and is urging over-50s to seek independent financial advice as a first step to ensuring they have the retirement they deserve.
Focusing on the 10 years to save your retirement is designed as a call to action for financial advisers and clients.
In reality whether savers are 10 years or five years from retirement there are still strategies that can help improve retirement income.
We do not have all the answers but our campaign is aimed at helping advisers and clients find the answers to their own retirement challenge.
Peter Carter, Head of Product Marketing, MetLife
Plunging stock markets, rock-bottom interest rates and falling annuity rates have combined in a toxic mix which is threatening to wreck the retirement plans of millions.
Independent financial advisers will be wearily familiar with the fact that the word "pensions" is now almost always accompanied by the word "crisis" with analysts, financial commentators and even pension providers competing to paint as bleak a picture as possible of the prospects for retirement in the UK.
It is clear that providers need to work harder in support of independent financial advisers to offer retirement saving solutions which deliver what they promise.
That is why MetLife has launched its 10 Years to Save Your Retirement report available at www.metlife.co.uk with a foreword by former Cabinet Minister and founder chairman of AIFA Lord Hunt of Wirral based on exclusive research among 50-plus workers and financial advisers.
It shows advisers already receive substantial business from the over-50s market:
- On average 35% of advisers’ pension and retirement planning clients first contact them when they are in the run-up to retirement
- Just 32% of clients have considered the issues involved in protecting their pension fund from last-minute shocks when they first consult an adviser
- Worryingly more than half of clients (56%) are relying on strong stock market performance to deliver their target retirement income despite recent experience of low returns from equities
- MetLife's report outlines how well-prepared – or not - potential over-50s clients are for retirement and what they are aiming to achieve through their retirement saving
- Nearly two-thirds (64%) of working adults aged 50-plus either do not believe or do not know whether they will ever be financially prepared for retirement
- Just 26% of working adults aged 50-plus believe they are financially prepared for retirement while 17% believe they will be ready by retirement but have work to do
- The average amount working adults aged 50-plus have saved in their pension fund is £51,200. The average man has £68,800 while the average woman has £34,500 saved
- Their average target retirement income is £18,100 including State benefits. Households with a current income of £70,000 are aiming for an average £32,100
Part of the answer may be saving more in the years that remain while other answers include changing an investment strategy or looking to add a guarantee on capital or income.
MetLife believes IFAs have a crucial role to play in helping save retirement for millions and is urging over-50s to seek independent financial advice as a first step to ensuring they have the retirement they deserve.
Focusing on the 10 years to save your retirement is designed as a call to action for financial advisers and clients.
In reality whether savers are 10 years or five years from retirement there are still strategies that can help improve retirement income.
We do not have all the answers but our campaign is aimed at helping advisers and clients find the answers to their own retirement challenge.