Throwing out the retirement rulebook; why we need to focus on financial wellbeing.

In the UK and indeed globally, we’re grappling with demographic change. Overall, we’re all living longer than ever, but this is leaving society and businesses with a retirement challenge. A recent report from the ONS suggests that by 2039, the number of people eligible for the State Pension in the UK will rise to 16.5 million – an increase of over 30 percent on today’s levels. Insufficient preparation will place a huge strain on public resources, and risk leaving millions of people suffering a decline in their quality of life in retirement.

With this in mind, it’s more critical than ever that we encourage people to start saving for later life now. The challenge, however, is that there are now a number of factors impacting the way we prioritise and engage with our pensions, that mean this is easier said than done.

1. Social change –There is no longer ‘a job for life mentality’ in the UK – it’s likely that people will have six or seven employers across their working lives; by the time they reach retirement, they’ll have several pension pots to manage.

2. Legislative change – The increasing real cost of pension advice, changes to tax relief, and auto-enrolment have all muddied the waters around pensions. While people are being given more autonomy and flexibility than ever, many are not being equipped to make important decisions for their future.