More Than Half of British Pre-Retirees Haven't Saved for Retirement
British pre-retirees are in even worse shape than their American counterparts when it comes to saving enough for retirement. According to new research from J.P. Morgan Asset Management, British retirees are counting on state benefits and part-time work to fund their retirement, and almost half of pre-retirees admit they currently save nothing for retirement, despite two-thirds expecting to rely on a pension for income.
When asked what their expected sources of income will be, 64% said they expect to use a pension for income in retirement, while almost half (47%) will use state benefits (up from 29% in 2006), and a quarter say they will work part-time. Only one in five (21%) expect to use other investments as a source of income in retirement (down from 41% in 2006), while others will rely on inheritance or downsizing their home (14% apiece) and one in 20 (5%) will depend on equity release.