Recent research from Scottish Widows reveals a concerning trend: nearly two in five people are expected to struggle to meet basic needs in retirement.
In response, a financial expert is shedding light on the long-term impact of poor planning and offering practical steps to break free from the cycle of financial anxiety.
Tom Barrett, a debt and benefits specialist at the wellbeing charity caba, warns that financial planning shouldn’t be left until later in life. He encourages people of all ages to regularly review their finances, emphasising that early and consistent planning can help prevent future hardship and boost confidence about the road ahead.
With online searches for “retirement planning” reaching 74K, Tom’s expert advice is timely—providing valuable guidance for those worried about their retirement and looking to make more informed financial decisions.
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Barrett said, “The news that nearly two in five people may be unable to meet their basic needs in retirement is concerning. It highlights how rising living costs are outstripping pension savings, making it difficult for people to adequately prepare of retirement. This can leave some people stuck in a cycle of financial anxiety, which can seriously affect both their outlook and mental wellbeing.
It’s always a good idea to assess your finances, and to begin thinking about your retirement provision, even if you’re still very young. This can help you be better prepared. If you’re approaching retirement or already retired, it is still worth taking time to evaluate your finances.
Review your income sources such as pensions, savings, or state benefits to work out what you’re spending each month as even small changes to your budget can make a difference over time. Using a budget planner can help with this.
It’s also worth checking if you’re entitled to any additional support like Pension Credit or Housing Benefit. Many people miss out simply because they don’t realise what help is available. At caba we have benefits advisers who can help you with this.
If you do have savings you may want to seek independent financial advice about how to make the most of your money. Where you are repaying debt, it is generally advisable to prioritise paying down high-interest debts first. If you are struggling to repay your debt caba have debt advisers who can support you.
Retirement finances can be complex, so it’s always worth speaking to an independent financial adviser. Planning ahead, whatever your age, can help you avoid unnecessary hardship and give you more confidence in your financial future.”
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