Friday, July 19, 2024

Do Brits feel financially prepared for retirement?

Retirement is meant to be a time when you can enjoy all that you’ve worked for your whole adult life. Whether you’re looking forward to cruises around the world or looking after grandchildren, maybe playing golf with friends or finally getting a dog, retirement doesn’t come cheap! 

Equity release experts, Key, asked near-retiring Brits if they feel financially prepared for retirement and only 69% felt quite prepared, although nearly half of these (49%) are still cautious about their situation.

Average retirement pot

As the average State Pension age continues to increase, Key’s ‘Retirement Ready’ study found that despite the pandemic, the expected income of those planning on retiring has in fact grown by £1,000 in 12 months. With the average pension pot  for 2021 coming in at £21,663. 

But not all retirees can expect the same income in retirement. Those who own homes retire on over two fifths more than those who don’t own property, with homeowners pension pots worth around £23,392 compared with £16,356 for non-homeowners.

Attitudes surrounding retirement funds

2020 and the early part of 2021 may have been some of the most financially unstable times we’ve experienced in recent times, and it appears these fears have left many approaching retirement with concerns surrounding their finances.

One in six of those planning to retire this year feel financially unprepared. For those who don’t own a home this figure more than doubles at 38%. The research suggests that where you come from can also impact how much you feel financially prepared.

Those living in London feel the most optimistic, with just under three quarters (74%) feeling financially prepared, whereas those in the North East feel the least optimistic, with just over a quarter feeling financially unprepared for their retirement.

How to earn extra money when retired

Regardless of whether you feel financially prepared or not, there are a few ways you can earn some extra money when you’ve retired that won’t get in the way of your newfound freedom.

Rent out a room: Research suggests that two thirds of older homeowners have two spare rooms, so why not make the most out of the extra space and  take in a lodger. If you live in a city or town centre and parking is at a premium, you could also consider renting out your car parking space or driveway for some extra cash.

Sell unwanted items: Many people when they retire consider downsizing. With downsizing comes the realisation that you have a lot of stuff that won’t fit into your new home. This presents the perfect opportunity to sell any unwanted items – and make a tidy profit that you can put towards your retirement fund.

Become a dog walker: With so many households getting pets during lockdown, many families are left wondering what to do with their canine companions now they’re going back to work. Setting yourself up as a dog walker is not only a great way to earn some extra income, but it will keep you fit too.

Tutoring: You will have gained a lot of experience and knowledge over your career, all of which can be put to good use in the form of tutoring. Whether you teach younger or more mature students, tutoring can help you to fill your time, give you a sense of satisfaction and earn a little extra money for your retirement goals.

Photography: If you’re a keen photographer, or even just do it for the fun of it – there are ways to sell your work online and at events. It could be photos of wildlife, landscapes or architecture – even if you don’t manage to sell them, the process is still enjoyable.

Sam Allcock
Sam Allcock
Sam heads up Cheshire-based PR Fire, an online platform that has already helped over 10,000 businesses to grab widespread media coverage on their news at an extremely accessible price point.

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