Words About Things

A recent study by the financial services company Prudential has shown that only 18% of people nearing retirement age feel that they have saved enough money for a comfortable retirement. Of the 1,001 people interviewed for the study 57% said that they would be willing to work past their retirement age in order to receive more money once they did stop working. While most had money saved up in financial investments and current accounts they did not feel that it was enough to maintain the standard of living they had become accustomed to.

Around 25% of people due to retire within the next year said that they would be happy to work for another 5 years in order to save more money. 7% of participants had considered working for an extra 10 years in order to make their retirement years more comfortable. Only 1 in 5 felt that they were financially ready to retire. Vince Smith-Hughes of Prudential said that these figure represent an issue faced by many of retirement age:

“”Working beyond the normal retirement age is already a reality for many people who either have insufficient savings or simply want a greater income when they do come to retire. But for a lot of people planning to retire in the very near future the state retirement age is sacred and their expectation has always been to retire at 65. Once they reach that milestone, regardless of the amount of money they have, they simply do not want to work anymore.”

Around a third of people expect their standard of living to fall once they retire compared to only 12% who expect their retirement to account for a raise in their standard of living. Most of us look forward to our retirement but these figures show that we must focus on preparing financially in order to be relaxed about our futures. Without significant saving we may find that retirement is a struggle when it should be a pleasure.

A recent survey has shown that almost half of Britons are unable to save. Only 60 percent of those asked managed to put money into their savings account each month, saving on average £206. Back in January 34% said that they were unable to save. Of those who were able to top up their savings 65% used instant access savings accounts.

Another survey back in July found that a quarter of people had no savings put aside at all. With unemployment still rising those who are not saving must be concerned about what will happen if the are made redundant. We are lucky enough in this country to have support systems in place for those out of work but it is still not a good time to be job hunting.

Those unable to save should console themselves with the fact that ISA interest rates have hit an all time low. Its great to have saving to fall back on but those savings wont be growing by much until the economy recovers.

It’s not all doom and gloom for young people in the UK, economically speaking at least. Petrol prices, rental costs and council tax may all be at an all time high but house prices are actually falling. This is either a very good or very bad thing depending on weather you have brought a house yet or not.

Average house prices have fallen an estimated 16 per cent in the past year.

Those of us who are renting are pleased to hear that first homes are becoming increasingly affordable. Some are suggesting that now is a good time to buy, before prices hit rock bottom and it’s too late.

In order to get a mortgage that wont completely strangle your finances you will need as much money as possible in your savings account. In fact, if you have enough of a deposit you could pay a lot less on a mortgage then on rent. Spending money on owning your property every month feels a lot more like making  investments than paying a landlord.

So is now the best time to buy? It all depends on your financial situation, good luck!

A recent study has shown that those of us who save some money every month feel more secure than those who do not. Even if we only save a small amount the act of putting away money makes us feel more positive and secure about our financial futures.

The study showed that when we reach a small saving goal it empowers us and makes us feel more positive about our ability to increase our savings. As the economy struggles it’s good to know that you have some money to fall back on should you experience difficulties. It is worth bearing in mind that the FSCS covers the first £50,000 per person per institution for standard bank account (the rules for investments are different).