Savings shortfall worries Sussex families
Concerns around a lack of savings are preventing people in Sussex and the South East from realising their life goals, a recent survey has found.
The survey, commissioned by Zurich UK, found around 46 per cent of people said a lack of savings prevents them from achieving life goals.
The study also found that 72 per cent of under 65-year-olds in the South East said they have goals they want to achieve when aged 65 or over, such as travelling more often or for longer periods of time, taking up new hobbies or being a position to financially support their own children, grandchildren or stepchildren.
Howver more than half (57 per cent) of those surveyed said they believe a savings shortfall will prevent them from realising this.
Head of Zurich UK Life Anne Torry said: “It is positive that people are so optimistic about their long term future and have clear goals they want to achieve after the age of 65, from travelling the world to starting a new hobby or financially supporting loved ones.
“Yet, when it comes to realising goals, whether in the long or immediate term, money is a clear brake on ambition with a lack of savings fundamental to realising aspirations. Despite realising this, our research shows just half of non-retired people have pension provision. This simply will not be enough to support the aspirations that people have.
“More has to be done to inspire people to take action and start saving. Small steps such as reviewing everyday spending to realise a saving that can be used to increase monthly pension contributions will have a huge impact over the long term, as will taking full advantage of support within the workplace and contributions from employers. In a low interest rate environment, a professional adviser can also help to create a plan and make the most of savings.
“The earlier action is taken, the more likely it is that your savings will be sufficient to realise your aspirations today and in the future.”
Zurich says to secure enough money to live comfortably in retirement, a commonly cited rule of thumb is that total contributions from both employer and employee are approximately half your age as a percentage of salary. For example, a 20-year-old should be saving 10 per cent of their income.
To help work out how much you should be saving the company has launched ‘Zurich FutureYou’, including tools to help people, plan and manage their own financial well-being.
For more information on Zurich FutureYou, visit: https://futureyou.zurich.co.uk/welcome
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