An expert has revealed one crucial thing people forget to plan for before they retire.
Consultancy Barnett Waddingham has said that only a fifth (19%) of UK savers have fully considered the consequences of getting a serious illness in their retirement plan.
The company’s At Retirement Reckoning report, a survey of 5,000 people, found that only a quarter of those under 50 have prepared for the possibility, compared to 16% of those over 50.
Just over two-fifths (43%) of the latter group say they have thought about it but not included it in their retirement planning. A third (32%) have not considered it at all.
In addition, only 17% of all those asked have considered the possibility of having to go into care. Just 14% of those over 50 and 22% of those under 50 doing so.
More than one-third (39%) of over 50s have thought about it but not included it in their planning, while 35% have not considered it at all.
A fifth (21%) of parents have planned for their children requiring urgent financial support during their retirement, with 30% of under-50s and 16% of those over 50 doing so.
Meanwhile, 12% of those asked have planned for their parents needing urgent financial support while they are retired, including 20% of those under-50, and just 7% of over-50s.
Half (52%) of this age group said their parents needing urgent financial support is not something they need to consider, while 18% have thought about it but not included it in their plan.
Mark Futcher, head of defined contribution at Barnett Waddingham, said: “Poor planning is almost as bad as not saving.
“The evidence shows we’re at risk of waving goodbye to a lost generation of retirees, cut adrift by insufficient planning, a myopic attitude to the harsh realities of financial shocks, and an unwillingness or inability to ask for help.
“The industry needs to urgently engage and educate people, especially those in their 50s and above. It’s not just about instilling in them the importance of planning, but about making sure they have the necessary tools to do so and a true understanding of the hurdles ahead and their familial financial ecosystem.
“Pension providers are the most popular place for advice for over-50s, which means they have an urgent responsibility to offer fulsome, understandable, and targeted support.”
