Nearly three quarters (70%) of new clients have not been adequately saving for retirement, new research from deVere Group has found.
Nigel Green, founder of deVere Group, said: “This is an alarmingly high percentage. Seven out of 10 of all the new clients, mainly British savers, we took on as a firm last year were not saving enough in order to be able to have a comparable lifestyle in retirement.
“When we initially meet with new clients we do detailed studies of their current financial situation. Then we discuss what age they would like to retire and how much money they would need to have saved over their working lives in order to achieve this. This year, only about 30% were saving enough to be able to make their own long term financial objectives a reality and having enough money to last throughout their retirement.”
Suggested retirement saving
DeVere Group says that people aged between 25 and 34 should be aiming to save between 15% and 20% of their income, increasing to between 20% and 30% for those aged between 35 and 44.
Individuals between 45 and 54 should look to put aside 30-40%, while those aged 55 and over need to save considerably more.
Green added: “In the future, it’s unlikely that governments will be in a position to support older people like they have done for previous generations; plus many company pension schemes have ballooning deficits.
“Also, it should be remembered that it might not be possible to work longer if necessary due to ill health, lack of career opportunities, or because you need to look after sick or elderly relatives.
“Whatever stage you are at in your working lives, the time to start saving is now. The earlier you begin, the easier it will be to reach your long-term goals. And it’s never too late to start saving for your retirement.”
