Retirement Reality Check: Are You Ready to Live on Your Googles?
Forget the odds, and let’s talk straight: about 74 % of Britons—whether on the streets of London or living the kid‑in‑the‑tropics dream—are heading into retirement with their wallets a bit light.
The Big Problem
- People are under‑estimating the pile they’ll need.
- Inflation, healthcare costs, and that afternoon tea you love are all creeping up the price tag.
- The longer you live, the more you’ll have to fend for yourself.
Nigel Green, the mastermind behind deVere Group, warns: “There’s a retirement crisis looming for Britons. Too many aren’t really saving enough to keep the lifestyle they dream about.”
Why The Reality Is a Needle‑point Lousy Idea
When people were asked to guess how much of their current income they could live on while retired, they grossly underestimated the actual figure. Many have no clue how inflation will stretch the value of every pound.
Example: Earn £50k now, think £1m will do the trick in retirement? Fast forward 20 years: with 3.5 % inflation a year, you’ll need about £2m to keep that same standard of living.
Hey, What About the Future of Healthcare?
People often picture a quiet retirement: no commuting, less office drama. But when the body starts demanding more long‑term care, that relaxed fantasy becomes an expensive reality. You might spend less on the bus, but more on regular check‑ups, medications, and maybe a fancy dental work.
Then there’s the fun side: travel, hobbies, family visits. All these joys have a price tag. And if you’re not banking for them, you’re very likely to run out of funds sooner than you think.
Get Your Plan Not Poisoned
Take a quick glance at your savings. Ask yourself if it would keep your day‑to‑day life. If you’re not sure, look for a professional, give your finances a little pep talk, and start now—otherwise, the year you’ve imagined might actually be the year your bank account hikes in despair.
Importance of investing
Why Just Saving Won’t Cut It
deVere Group’s latest survey shows that most people treat retirement like a cash‑only game. That’s a pretty big rookie mistake. Inflation’s hungry, and if you’re only putting money in a savings account, it’s going to nibble away at that nest egg faster than you can say “olé”. That’s why investing matters so much.
A Quick Talk From Nigel Green
“Let’s get one thing straight: saving alone isn’t enough to build a sustainable retirement fund. The real power lies in how your money compounds when you let it grow over time,” says Nigel Green. He stresses that ignoring investment returns can create a huge gap, especially when you factor in the pesky inflation.
CEO’s Takeaway: Start Early, Keep Pushing
“The sooner you start planning, the better your cushion will be,” states the deVere CEO. He urges everyone to act now, keep a regular check‑in on your goals, and tweak your savings and investment strategies as life changes.
He also recommends working with a financial advisor to build a comprehensive plan that covers all the key variables—inflation, investment returns, and healthcare costs—that can affect your retirement.
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