By David Triggs

New research from Retirement Advantage suggests that many over 50s in the UK are underprepared, uniformed and daunted by their rapidly approaching retirement.

Andrew Tully, the Pensions Technical Director at Retirement Advantage, states: “In 2017 we find that there is a perilously low level of understanding and financial activity in preparing for retirement. We don’t want people to lurch, like zombies, towards their retirement.”

Zombies are generally known for their tendency to shuffle around in B movies, rather than retirement, so exactly how many people feel unprepared? And more importantly, what can they do about it?

How many over 50s feel underprepared?

Worryingly, most of them. According to the survey, which consisted of 1,013 people between 50 and 65:

• 65% feel unprepared for retirement 
• 61% have not requested a State Pension Forecast 
• 42% don’t have a will 
• 9% said that they were ‘simply daunted’ by the thought of retiring 

With a significant portion of over 50s not feeling adequately prepared for their retirement, what can they do about it? One of the first things that Mr Tully suggested was getting a State Pension Forecast: “In particular, we would stress getting an accurate understanding of the pension the Government will pay you. The difference can be over £100k through a 20year retirement.”

What is a State Pension Forecast, and how do I get one?

A State Pension Forecast is a piece of information from H M Revenue & Customs (HMRC) that tells you:

• When you will be eligible to receive the State Pension 
• How much you will receive it 
• How to increase it, if possible 

The State Pension forms the foundation of your income in retirement. It may not be enough to afford the lifestyle you desire, but you wouldn’t want to do without it. Without knowing how much you will get, it’s impossible to work out how much you need to bridge any shortfalls.

Getting a State Pension Forecast is a simple process, and can be requested over the phone, by post or by using the GOV.UK online tool which is available here.

Mr Tully comments: “Many of those we interviewed say they will need to supplement the income they receive from the state. This is unsurprising, but unless people have the numbers then they can’t properly plan how any income from workplace pensions fits, or work out if they might need to unlock some of the value in property to get the desired standard of living. There is a real need for people to take time to sit down and consider their retirement plans. For those that are daunted or want an expert to help them, then a contacting a regulated financial adviser is a great place to start.”

If you are one of the 65% who feel unprepared for retirement, the key thing to do is take action and seek professional advice. The temptation to bury your head in the sand may be great, but whether you are lurching reluctantly towards retirement like a zombie, or embracing it with open arms, you’ll want to be as prepared as possible.

If you have any questions or queries about your retirement planning, or your State Pension Forecast, please get in touch by calling the number at the top of the page.