British investors are concerned about not having sufficient money to enjoy a comfortable life after retirement, as well as lack interest for pension planning, according to a new report by Schroders.
The 2016 Schroders Global Investor Study found that 44% of the investors are concerned that they will not have enough money in retirement. The Study, which surveyed 1,000 investors in the UK and 20,000 investors globally, showed that 14% of are ‘very concerned’, whilst 30% are ‘quite concerned’ by this concept.
The study found a worrying lack of interest in pensions with almost a quarter (24%) of those concerned saying they would prefer to spend their money on something else. The report added that 9% of UK investors do not have a pension yet.
The issue of lack of interest in pensions is more prevalent among the millennial segment, with 14% of those concerned saying they do not have a pension and 35% citing that they would prefer to spend their money on something else.
Also, 16% of concerned investors said that they could not afford savings for a pension, with the same cited by 21% of millennials.
Schroders managing director of UK Intermediary Robin Stoakley said: "We are concerned that the results indicate a general lack of engagement for pension planning. This is very worrying given the clear message coming through that future generations of pensioners will have to provide for themselves.
"We are particularly concerned for millennials as they will not benefit from the intergenerational transfer of wealth to the same degree as previous generations thanks to longer life expectancy of their parents and grand-parents. The pensions landscape has seen significant changes over the last three years and the need for financial advice and financial education is greater than it has ever been."
For 39% of investors, lack of knowledge on how much to save each month to have a sufficient pension in retirement was the key concern, while 31% said that they were unsure of what investments to make for pensions.
Only 26% of the UK investors stated that they were not concerned about their retirement income due to various factors including a regular savings account (59%), a personal pension (53%), an ISA to support retirement plan (37%), and a sufficient workplace pension scheme (49%).
Also, 19% of investors cited property investments, and 12% cited downsizing their home as the reasons for being unconcerned about retirement provisions.
"As an industry we need to do more to make it easier for investors to understand the importance of saving for the long term, and investors themselves need to take responsibility for their financial future," Stoakley added.