UK workers are unprepared for retirement

Research from HSBC has shown that savings will only last for seven years in retirement, even though the average retirement is expected to last 19 years.

Globally, research has shown that people run out of their retirement savings over half way through their retirement but here in the UK one in five is saving nothing at all and seven out of ten workers don’t pay into a pension scheme.

Auto enrolment was introduced last year and is expected to help the situation.

Gill Alton runs Alton Property Partners, offering a residential investment property service to help you build a portfolio for a secure financial future. Alton Property Partners provides a comprehensive and personal Property Portfolio Building Service for buy to let investment in the UK. Gill believes that property as a pension could be the answer. She says:

“The extent of the retirement disaster faced by the United Kingdom is shown within this article with the average retiree looking for their retirement savings to provide for them for 19 years; however the reality is that their savings will only cover them for 7 years. This massive shortfall of 12 years is the worst HSBC’s international study found when reviewing 15 countries worldwide, even countries such as Egypt, Brazil and Mexico were more prepared for their retirement than the UK.

“Is this because the recession has particularly hit the UK or as a nation do we just stick our heads in the sand and think we can worry about retirement later?

“As we know the world has been hit globally with the financial crisis over the last 4 years, so the U.K.’s lack of retirement savings is probably more an indication of us as a nation than the worldwide situation. Less than a half are saving enough for their retirement and one in 5 people are not saving at all. These are extremely worrying figures.

“Saving for retirement the traditional way with a pension fund requires time to allow the effect of compound growth to take place, so leaving it late to start, or saving too little means one of 2 things:

1. You have to save a tremendous amount each month or

2. Your saving pot will be extremely small and you need to live a retirement with a great many cutbacks.

“Thankfully there is an alternative way to save for your pension, which is often forgotten this is to invest in property.

“Although for many this can seem daunting wise property investment can give you the Lifeline you require for your retirement years. With property investment you are able to leverage the money of both the lender and the tenant to build your pension fund; this means that you can build a pension fund in a much shorter period of time than the traditional route. It represents a very strong solution not only for those who have years before retirement, but also for those who have left it too late for the stock market to deliver the golden retirement they require. Purchasing for cash flow can put money into your pocket in your retirement years along with giving you an asset that you can leave to the family, so ensuring future generations are financially secure.”

Notes to Editors

Gill Alton is the founder of Alton Property Partners, which provides a comprehensive and personal Property Portfolio Building Service for buy to let investment in the UK. To find out how property could be the answer to your pension worries, and to find out more about property as a pension click here. Alton Property Partners manage the entire investment process, from sourcing property at a discounted value, co-ordinating the Mortgage, arranging the refurbishment, right through to ensuring it is ready for the rental market

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