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Annie Hayes

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Workers in pensions gloom

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Pensions worries are riding high according to latest findings from the Nationwide and despite slowing confidence in the property market most are pinning their hopes on bricks and mortar to plug the pensions shortfall.

Four in every 10 (41%) people in the UK believe they will not have sufficient income for their retirement and a significant proportion (13%)do not know if their retirement income will be adequate.

These are the latest findings from the Nationwide consumer confidence report.

Equity release is considered to be an option by a quarter of respondents who are worried about their retirement funds.

While a third said they believe property investment to be the solution. Although only 8% have taken the property plunge.

Despite a strong belief that property will provide the answer, the research shows that consumers’ confidence in the future value of their homes has dipped with only 40% expecting their homes to be worth more in the next six months. In June, 64% were satisfied that their homes would go up in value.

In line with this downward trend in consumer confidence are feelings about the state of the economy. In June 52% of people considered the economy to be good. Today only 45% see the economy as good and one in five (19%) see it as being bad.

Women topped the worry charts with two in every three or 68% lacking confidence that their projected retirement incomes would be sufficient.
Four in ten (41%) men and women expecting financial hardship in retirement are aged 30 – 44. Twelve per cent of people aged 60-74, many of whom will already be retired, are currently struggling financially or expect to be short of money going forward.

Nationwide’s group economist, Alex Bannister said: “Consumer’s confidence in the economy has slipped slightly over the past few months but people still remain broadly optimistic about the future. Pensions however are a significant concern for many people, particularly those in their thirties and early forties, women and existing pensioners.

“Property is regarded by many as the solution to their pension worries and increasingly it seems that an Englishman’s home is his pension and that applies to women and people across the UK as well. Many are ignoring the need for a more formal retirement savings vehicle which presents the government with a major issue that needs to be addressed urgently.”

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Annie Hayes

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Read more from Annie Hayes
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