Reliance on the state pension still prevalent amongst two thirds of Brits

• But reliance on the state pension drops to 44% for the nation’s under 35s
• A quarter of Brits plan to draw on their ISAs for their retirement income
• One in seven women (14%) rely on their partner to provide for their retirement income
• 4% of Brits expect to rely on the government’s NEST scheme
• Unbiased.co.uk urges the nation to take action and to get retirement planning

With pensions and retirement provisions continuing to make headlines and further changes predicted in this year’s Budget, unbiased.co.uk reveals that the majority of Brits (65%) continue to rely on the state pension to provide them with an income in retirement and only 4% expect NEST to form part of their pension income.

While the state pension topped the list of retirement income sources, almost half (47%) of Britons expect to rely on a private pension to play a part in their retirement provision, followed by a quarter (25%) who named ISAs as their retirement income source.

Interestingly, reliance on the state pension drops to 44% amongst the nation’s under 35s, compared to 62% of 35-54 year-olds and 84% of Britain’s over 55s. The middle generation (35-54 year-olds) is also least likely to rely on general savings (19%)* or ISAs (21%), compared to the under 35s (25% savings and 23% ISAs) and the over 55s (33% savings and 29% ISAs).

One in seven women (14%) expects to rely on their partner to provide an income in retirement, compared to only 5% of men.  Only 41% of women count on a private pension to provide for their retirement (against a national average of 47% and 54% of men).

Karen Barrett, chief executive at unbiased.co.uk comments:“Planning for retirement is one of the most important things we can do to ensure we are financially secure in the long-term and as our research shows, there is a multitude of retirement savings options out there.  But not every option is right for everyone and it is important to realise that simply relying on the state to provide for you is not going to be enough.  We all have to take ownership of our own financial future and plan for our income in retirement accordingly, whether it is through just putting money into a savings account or actively contributing to a private pension.

“There are many benefits of saving into a pension scheme, and the tax benefits associated with paying into a pension compared to other savings vehicles can be an important factor to consider.  Planning and providing for your income in retirement is an area where taking advice from an independent financial adviser can be of real help.  An IFA will look at your overall financial situation, assess your financial goals and put together the best retirement savings solution for you and your individual circumstances.

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