The global pensions research showed Britons start planning for their retirement at the age of 28 but don’t purchase a property until they are 29.
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 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.
Young Britons are more financially savvy than many would give them credit for, saving 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, commened: “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 £1,051 and £978 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%).
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.”
