Many Brits Want to Leave the UK When They Retire

A recent survey conducted by investment comparison site Investing Reviews has shed light on the sentiment of the UK population towards pensions and retirement. The survey aimed to gain insights into people’s opinions, attitudes, and beliefs surrounding these important topics. With over 2,000 participants, the results offer a valuable glimpse into the nation’s collective perspective.

Key Points:

  • A new survey by Investing Reviews has revealed the UK’s sentiment around pensions and retirement.
  • 70% of respondents believe it’s harder to retire comfortably in the UK today than ever before.
  • 78% of respondents also believe the retirement age in the UK should be lowered.
  • 42% of Brits would prefer to leave the UK and live abroad for their retirement.

Retirement Age: Lowering the Barriers

Surprisingly, UK sentiment on retirement ages closely aligns with the ongoing tensions in France regarding the proposed increase in retirement age from 62 to 64. The survey unveiled that 68.71% of respondents believe the current UK retirement age of 66 should be lowered.

This sentiment is coupled with a prevailing belief among 71.16% of respondents that retiring in the UK has become more challenging than ever before.

Pension Shortfalls: The Struggle for Comfortable Retirement

However, as the survey by Investing Reviews reveals, the aspiration to retire earlier comes with significant challenges. An overwhelming 62.60% of respondents expressed concerns that their pension alone would not suffice for a comfortable retirement, even if they have a diversified pension fund.

They believe additional investments are necessary to bridge the gap. This sentiment is echoed by 55.82% of respondents who feel limited in their ability to make sufficient pension contributions.

Employer Contributions: A Crucial Factor

When it comes to retirement planning, employer contributions play a vital role. Astonishingly, more than a third (42.66%) of respondents would consider switching to an entirely different sector if it meant securing greater employer contributions towards their pension.

A previous study by Investing Reviews, analyzing official government data from the Office for National Statistics (ONS), highlighted the discrepancies among sectors.

A chart showing the percentage of prospective retirees choosing to retire outside the UK
A chart showing the percentage of prospective retirees choosing to retire outside the UK

The sector with the highest percentage of employers contributing 20% or more to employee pensions is “public administration and defense (including compulsory social security).” In contrast, the sector with the lowest percentage of such contributions is “wholesale and retail trade (including motor vehicles and motorcycle repair)” at a mere 1.3%.

Knowledge Gaps and Retirement Concerns

The survey findings also revealed significant knowledge gaps among respondents. A staggering 34.93% admitted to not knowing the exact amount of money in their pension. More than a third of participants expressed doubt about retiring comfortably in the UK.

These concerns align with the sentiments expressed by 42.66% of respondents who stated their preference to retire outside the UK if given the opportunity. This raises pertinent questions about the impact of inflation and the rising cost of living, factors that may hinder retirees’ ability to maintain their desired lifestyle within the country.

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Commenting on the findings, CEO of Investing Reviews, Simon Jones said: “There are endless debates to be had regarding the UK retirement age and the state of pensions, especially considering the recent rise in retirement age in France and the backlash that received.

These responses offer a fascinating insight into the attitudes that the British public hold towards pensions and retirement ages, particularly the sentiment that it is now harder to retire comfortably than ever before. It will be interesting to see if factors such as the backlash in France to the rise in the retirement age and the increasing difficulty of the cost-of-living crisis have any effect on these sentiments in the future.”

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