Retirement risks and pension pitfalls – UK adults face financial planning black hole

• 45% of Brits have never updated their will, according to new research from Killik & Co
• 50% have never spoken to an adviser about their retirement plans
• And 32% have never looked at their pension forecast

 
UK adults are woefully unprepared for retirement and legacy planning, with almost half of UK adults (45%) having never updated their will and many not taking time to review their retirement finances. According to the new research from wealth manager Killik & Co, many Brits could have no say in how their estate was passed on if the worst was to happen.

Behind this 45% is a notable gender split – 39% of men haven’t updated a will, compared to 52% of women. Concerningly, there is very little age discrepancy – 43% of 55+s have never updated a will – a figure you’d expect to be lower as people age. The results also reveal a stark difference in attitudes between higher earners vs those on lower incomes. Over half (56%) of those on £15,000 or less had never updated their will, vs just 30% of those earning £100,000 or more.

Planning for death may be understandably off-putting, but this low financial engagement also translates to planning for retirement, something which should be a more exciting prospect. 50% of people have never talked to an adviser about retirement – rising to 58% of 55+s. This is especially true for those on lower incomes. 58% of those earning £15,000 or less have never sought advice, compared to just 29% of those on higher incomes of £100,000 or more.

Additionally, many could be unaware of how much they’re set to have in retirement, as 32% of Brits have never even reviewed their pension forecast, rising to 37% of women. The income trend continues, as this is true of almost half (49%) for those earning £15,000 or less, compared to only 14% of those with an income of £100,000.

 
William Stevens, Head of Financial Planning and Partner at Killik & Co, comments: “Inheritance and legacy planning are crucial for securing the financial future of your loved ones, regardless of your income level or perceived level of wealth. It’s never too early to start planning for retirement and seeking professional advice can make a difference in achieving peace of mind and potentially even improving your retirement finances. Whether you’re just starting in your career or approaching retirement, it’s essential to have a clear plan in place and an understanding of roughly what to expect. Everyone should be regularly reviewing things like your pensions, any investments you hold, and cash savings to ensure they are still working for you and fulfilling your needs.”

“Likewise, taking proactive steps and planning toward inheritance and legacy planning to ensure hard-earned assets are preserved and passed on according to your wishes is essential. For those with larger estates who might be concerned about Inheritance Tax, planning early is even more important.”