In 2012 it was found that the average Briton will enjoy just seven years of financial freedom during their lifetime. This usually occurs between the age when children leave home and the time when a person enters retirement – usually between the ages of 58 and 65.
This ‘freedom’ is experienced as a result of not having dependents, but still having at least one full time salary without the onus of a full mortgage to pay off – or any mortgage at all. However entry into retirement ends this brief window, as increasing number of British pensioners are finding that their retirement funds are not enough to live on, even when combined with a state pension.
Long Term Security VS Short Term Benefits
An enjoyable retirement is a blessing, but it’s a reality which is becoming more and more distant as British pensioners struggle to make ends meet. Despite this, it’s been found that young people have no interest in saving into private pensions, instead preferring to focus on the immediate benefits of spending their money. In fact, so few people are now saving into private pensions that they may well cease to exist by 2050.
This disinterest in pension savings may also be attributed to other factors, which have been made more apparent as the British recession has worn on. Rising house prices, combined with a lack of affordable lending, has meant that more young people have become concerned with saving for houses than they have with saving for retirement.
In addition, since wages have stagnated whilst living costs and personal debt have both risen, there has been a decrease in the amount of disposable income held by the average British person – an income which might otherwise have been invested in a retirement fund.
Don’t Miss Out on Potential Investment Opportunities
Financial experts are now warning people that, when it comes to saving for retirement, private pensions are not the way forward.
Not only are pensions not as reliable as they once were, they are also simply not an attractive enough option for young British savers, who are more interested in saving options which allow them access to their finances after 2 or 3 years, instead of 40 or 50.
Also at work is a simple lack of interest in financial planning in general, which is seeing young British people shy away from researching financial investment options such as ISAs, bonds or stocks. A lack of incentive, combined with a lack of readily available information, has meant that creating a sound financial portfolio is not on the forefront of the British agenda.
Get Help with Creating Your Sound Financial Portfolio
Despite a lack of interest, the creation of a sound financial portfolio could be exactly the solution which would preserve the dream of a financially secure retirement. And although the creation of a portfolio can be difficult, offshore investment experts Sanlam Investments are on hand to provide potential investors with all the information they need to start saving today, for a brighter tomorrow.