One in five are worried about funding their retirement...
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AS BILLS rise and the cost of living crisis increases many are questioning whether they can afford to retire at this time.
Credit management company Lowell has conducted research revealing Brits’ biggest financial worries and misunderstandings around retirement.
It found that more than one in five Brits (21 per cent) are worried that a pension is not enough to live on once retired.
One in six Brits (17 per cent) are delaying retirement for up to five years due to debt.
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The following figures revea the true impact debt can have on retirement with many Brit believing retirement will be delayed for two or more years
The time of retirement dela One to two years – 9 per cent; three years – 13 per cent; four years – 12 per cent; five years – 17 per cent; six years – 6 per cent; seven years – 7 per cent; eight years – 2 per cent; nine years – 1 per cent; ten years – 12 – – – – disappear when you die. Following a death, a sum worth up to two to four times your salary will be paid tax-free to your beneficiaries. If a Brit has already hit the retirement age before they have died, a percentage of their pension will continue to be paid at a reduced amount to their next of kin.
Another misconception around pensions is that 13 per cent of Brits believe you must apply for a workplace pension. Brits are automatically enrolled into a workplace pension at the age of 22.
Other misconceptions highlighted include 12 per cent of Brits believe you can access your state pension early, 11 per cent think that you can only retire once you hit 65, and 9 per cent believe that when your company goes pension disappears when you die – 19 per cent; you must apply for a workplace pension – 13 per cent; you can get access to your state pension early – 12 per cent; you can only retire once you hit 65 – 11 per cent.
Other retirement myths include: If your company goes into administration, you lose all your workplace pensions – 9 per cent; there is no way to check your pension amount – 5 per cent.
Lowell UK CEO John Pears said: “Lowell’s research confirms that our customers do have concerns around managing their debt and retirement. But, it’s also highlighted that there are many common misconceptions and worries surrounding retirement across the general public; indicating that our customers are not debt might have an impact on your future, contact our team to talk through your worries. They help thousands of customers everyday, and as part of our mission to make credit work better for all, we’ll always aim to help you clear your debts in a way that’s easy and affordable.
“However, it’s also important to know that there are many credible, impartial and trustworthy sources to support anybody struggling financially – whether you’re a Lowell customer or not – and a helpful list is available at our www.lowell.co.uk/help-andsupport/independent-support website.”
For more visit www. l lowell.co.uk/about-us/lowellsblog/financial-health/doesdebt-have-an-impact-onretirement website.