Almost a third of British adults are concentrating on planning for retirement, according to some insightful research from Skipton Building Society. Everyone has had to adapt to new changes in their lives, and it seems that the way people are approaching their finances is also evolving.
We take a look at what this research reveals about our changing attitudes towards money.
Planning for retirement
It’s likely that recent events have shaken up many people’s plans. Recent months have shown that staying flexible is really important when making long-term financial plans.
A lot can happen in a lifetime, so it’s important to make sure there’s some wiggle room in your financial blueprints. This way you can roll with the punches no matter what the world throws at you.
Whether you’re currently saving for retirement or it’s right around the corner will probably influence your priorities.
Even if retirement is still in your distant future, it’s never too early to start thinking about it. Recently, we put together our top tips for retirement planning in 2021, and there’s some useful information in there no matter what stage you’re at.
The perfect retirement
What makes retirement perfect will be different for everyone. Understanding your own priorities will help you massively when planning for your own perfect retirement.
Skipton’s head of financial advice, Helen McGinty, had this to say:
“The pandemic has placed huge importance on wellbeing, and we’re expecting lifestyles and priorities to change as people make the most of now. Achieving the retirement lifestyle you want is vital, and we’re seeing almost one in five (18%) of those aged 18-26 thinking more carefully about how to prepare for retirement.”
It’s important for each of us to have our own individual plan, and it’s great to see so many people in the younger age bracket seriously thinking about their futures.
Financial goals and planning for retirement risks
Skipton’s research also shows that around two-thirds of people claim they still feel confident about reaching their financial goals this year. So it seems that the unexpected whirlwind of events hasn’t dampened people’s spirits when it comes to their finances.
However, the research shows that almost half of us are more risk-averse as a result of Covid-19. Having a low tolerance for risk can be healthy to a certain extent. But it’s important to remember that trying to avoid risk entirely can actually be harmful to long-term goals like planning for retirement.
Creating a forward-thinking investing strategy is a good way to build financial independence. This way you can factor in the level of risk you’re comfortable with.
Outside of pension plans, using a stocks and shares ISA can be a great place to start. Using a tax-efficient account like this can minimise your tax obligations and allow you to maximise your potential returns without taking on any added risk.
Reaching out for help
For many of us, it feels like we’ve been living in our own private bubbles recently. So it can be reassuring to find out how others have been coping, especially with all the financial uncertainty this past year.
It’s okay to ask for help when you need it. This new research reveals that 37% of British adults wished they had sought financial advice last year. And 48% say they will now be more likely to seek financial help due to the coronavirus pandemic.
Seeking help from a financial advisor can give you a lot of clarity. Whether you’re planning for retirement or simply trying to get organised. It can be stressful carrying the burden of managing the household finances. It’s important to remember that if you need some extra guidance, you’re not alone.
