06 March 2007
Global pensions research released by AXA shows that
forward-thinking Britons start to plan for retirement earlier than
any other nation worldwide, with the average British person
starting to plan at age 28.
The research by AXA shows that Britons start planning for their
retirement at the age of 28, a year before they begin climbing the
property ladder.
The UK's workers take the lead on retirement planning worldwide
with those in Canada and the USA coming second at the age of 30 and
those in Australia coming third at 31. Britons are streets ahead of
those in Europe with French, German and Italian workers also
preparing for retirement at 31 and those in Spain waiting until
they are 33 before they consider how to fund their pension.
The research shows that young Britons are more financially savvy
than many would give them credit for, saving a whopping 10% of
their salary towards their retirement income. However as one third
will rely on property to secure a retirement income, concerns are
raised about how much thought and advice has been taken when
exploring the best way to plan for retirement.
Steve Folkard, Head of Pensions and Savings Policy at AXA, said:
"It's exciting to see people starting to take more responsibility
for their own income in retirement. However homeowners have limited
options for generating earnings from the property they live in.
"Many people don't take into account how emotionally attached
they can become to a family home. By the time they retire, people
are often loathed to move away from their friends and family or rob
their children of their inheritance by handing over their home to
an equity release company. This can scupper plans to take an income
from the equity in their home."
According to the AXA research, the UK's current pensioners are
significantly better off when compared to their European
counterparts. The average retiree in the UK has £2711 to play
with after monthly living expenses have been paid and earns
£8681 per month in pension income.
Those in France and Germany earn a higher pension income than
those in the UK - earning £10514 and £9784
respectively, however those in France, Italy and Spain state they
do not have enough money to cover their living expenses.
European workers seem to think that UK workers have a better
pensions system than them and the majority of countries on the
Continent favour a common pensions system whereas Britons are
firmly against the idea (58%). Those in favour include Portugal
(86%), Spain (78%), Italy (66%) and France (51%).
Steve Folkard continued: "With the majority of Europeans having
less disposable income in comparison to their UK counterparts, it
is hardly surprising they favour a common pensions system that
could bring their financial situation inline with the more affluent
UK."
