One in five over 55s expect to work for longer than they anticipated, with 62% doing so to fill a retirement shortfall between what they have saved and what they will need or because their financial circumstances have changed, says Fidelity International.
According to Fidelity’s latest research, two fifths (40%) of people say they want support in understanding how much they should be contributing to their pension to help fund a comfortable retirement, rising to 50% among those aged under 55.
The findings highlight shifting trends in savings priorities as people age, with younger generations focussed on housing and everyday expenses rather than retirement.
Those aged between 18-34 prefer to focus on shorter-term goals, with more than a third (35%) prioritising saving for property and 29% for everyday expenses. Just 15% of this cohort are focussed on retirement.
As people move into their mid-career years (35-44), everyday expenses become even more prominent (40%). With many achieving their property goals by this point, the balance between saving for a home (18%) and retirement planning (28%) shifts, the research showed.
It’s only in later working life (45-54) that retirement planning begins to take precedence (39%), narrowly overtaking everyday expenses (37%), while the number saving towards a property drops to just 9%.
Daniel Smith, head of workplace investing distribution at Fidelity International, warned that waiting until your 40s or 50s before prioritising retirement savings can result in a significant gap between what’s saved and what is needed for a comfortable retirement.
“Individuals need access to tools and guidance that enable them to balance short-term financial needs and goals throughout different life stages in a tax efficient way. With the right support, these goals don’t have to compete – they can coexist,” he said.
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