More than a third of ‘Baby Boomers’ say they are unsure about how much they should save for retirement, according to a new survey from Charles Schwab UK.
The Money Mindset UK survey, which explores the financial attitudes and behaviours of Britain’s retirees and those approaching retirement, uncovered significant gaps in confidence and understanding across generations.
It found that Boomers – those born between 1946 and 1964 – are the most concerned about pensions and retirement spending but they are also the most likely to be unsure about how much they should be contributing.
Among those saving for retirement, a quarter of respondents say they contribute as much as they can to their pensions each year, while another quarter contribute to their pensions but also save into ISAs or other investments.
However, 18% admit they do not contribute as much as they would like, and 16% are unsure of how much they should be contributing. Notably, Boomers stand out, with 36% saying they are unsure about how much they should save for retirement, more than any other generation. While Gen X are the most likely to say they add to their pension pots, they say they are not contributing as much as they would like (33%).
Richard Flynn, managing director at Charles Schwab UK, said: “The findings show that Britain’s retirees and those close to retirement have built their financial habits around caution and security, which is understandable given the challenges they face. However, this also highlights a significant opportunity to empower this generation with the knowledge and tools they need to make more confident financial decisions in retirement.”
The findings reveal that Gen X and Boomers overwhelmingly prioritise financial security, with many opting to keep their money in savings accounts rather than investing. Three fifths (60%) of retirees say they avoid investing due to the risk of losing money and older respondents aged 55-64 and 65+ were more likely to believe investing was too risky for them than other age groups.
Separately, the survey found that 29% of respondents currently do not have a state or private pension, and Gen X and Boomers without pensions are more likely than Millennials and Gen Z to say they are not thinking about retirement at all (49% and 50%, respectively).
However, Gen Z stands out as the generation least likely to have a pension, with 59% reporting they do not currently have one, 34% of whom admitted they are not thinking about retirement at all.
Furthermore, confidence in achieving a comfortable retirement for all those with pensions is mixed, with 46% saying they are not confident their savings will provide enough for retirement.
A third (33%) of respondents said more generous tax relief would encourage them to increase their retirement savings, followed closely by higher employer contributions (28%).
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