- 42% of full time workers say their biggest regret is not saving enough money when they were younger
- People fear loneliness and outliving their savings more than death
New research out today reveals more than half (54%) of those aged 40-plus believe they will have to work past retirement age in order to have enough savings to enjoy the lifestyle they want.
The national study of 2,000 adults aged 40 and over, commissioned by Leeds Building Society, also revealed that 42% of full time workers say their biggest regret is not saving enough money when they were younger, with a quarter (25%) of 50-60 year olds specifically stating not saving enough to retire early.
Having a happy and active future is on the minds of many 40-plus year olds, 42% are saving for a comfortable retirement, with one in five (18%) respondents also saving money to travel the world. In addition, almost a third (28%) are saving for home improvements with 4% also stating they are saving to start their own business.
However, despite having less free time, the study revealed it’s actually those currently still in employment who are worrying most for the future, compared to those who are already retired. Employees spend on average twice as many hours a week worrying about the future, with workers revealing they worry 150 hours extra a year on average than those who are retired.
Looking at what people are worrying about most; loneliness (30%) and outliving their savings (27%) are a bigger concern than death (24%). In addition 14% are anxious about losing their purpose, 11% dread putting on weight and one in 10 worry about being bored.
Annabel Simons, 59, is a founder of the lifestyle blog for women over 50, The CountryWives. She set up the website with a friend in 2010 and over the years, it has morphed into a leading online weekly magazine sharing useful ideas, inspiring stories, recipes, tips and advice. She commented: “We started The CountryWives as a way of keeping in touch with friends, and with a lot of self-teaching and financial investment, it’s grown to the site it is today.
“In the first few years, I had to rely on savings to maintain the blog. However, I had to be very careful not to invest too much money into it, and stick to what I could realistically afford.
“Now I’m much more confident in my writing and it’s made me realise it’s something I thoroughly enjoy. The Country Wives has really expanded my horizons and it allows me to continue to write and meet new people who are completely different to my close friends.”
Thinking about enjoying retirement, when asked to choose who they trust most to look after their pension fund out of a bank, building society or pension provider, 62% of respondents who selected one of those options said either a bank or a building society over a pension provider.
When asked why, over half (55%) said they feel more control of their own money and 49% also said they would have easier access to their funds. Plus more than a third of those retired (36%) said they have the best relationship with their bank or building society.
Richard Fearon, Chief Commercial Officer at Leeds Building Society commented on the findings:
“It’s completely understandable that many respondents have concerns about the future but it’s really positive to see that once people do retire, they worry a lot less.
“We’ve spoken with a number of inspiring people in their 50s, 60s and 70s who have shown how savings can help them carry on enjoying their life and do the things they perhaps didn’t have time to do when they were younger.
“We hope those like Annabel can really help encourage and reassure people that getting older can be something to look forward to. As a building society we encourage saving so our members can have the future they hope for and we work hard to develop products to meet their needs and offer them long-term good value. We’d say it’s never too late to open a savings account and start planning for your future.”
For more inspiration on how to make the most of your retirement with your savings, visit http://www.leedsbuildingsociety.co.uk/knowledge-base/savers/another-way-to-save/ to find out how several inspirational people are having the best years of their lives.