It comes as women have been told they risk missing out on their retirement goals because they haven’t been able to plan for them. Lack of funds, competing priorities and limited knowledge of how to save were all cited in a Fidelity study that expressed concern about preparing for retirement.
Express.co.uk spoke exclusively with Emma-Lou Montgomery, Associate Director of Fidelity International, about the steps women and men can and must take right now.
She said: “Saving for the future, whatever your age, can seem particularly difficult in the current climate, with household bills, record inflation and general day-to-day costs all rising. But that doesn’t mean it’s less important.
“What you do – and just as importantly don’t do – now will impact your future.
“It’s about thinking smart on two levels – how you manage the day-to-day rising cost of living and keeping tabs on your future.”
She added: “Doing this, especially in the current climate, may feel uncomfortable, but it’s the best way to come up with a clear budget plan and identify areas where you can save money, and to use them to increase your future savings.”
But it’s just important for Brits to consider their long-term goals, especially when considering retirement.
Ms Montgomery suggests Britons think about what they want their retirement to look like.
From there, they will be able to determine the revenue needed to achieve this and determine if their goals need to be readjusted.
Given the current cost of living crisis, Britons may need to think more seriously about their retirement, especially if they are just a few years away from that goal.
Ms Montgomery continued: “Ideally, your plans should allow you to cover essential expenses with income that can increase as prices rise.
“That could mean using some of your retirement capital to buy an annuity that gives you a fixed income and may even offer some inflation protection. You can get an annuity that pays inflation-linked income – but it comes at a cost, or it may simply mean leaving your retirement capital invested longer.
But whatever action the British decide to take, taking action rather than doing nothing at all is most important.
Without a clear understanding and careful plan of how one wants their retirement to look like, there could be devastating consequences.
Ms Montgomery said: ‘The biggest risk is that your savings will be way below what you need.
“It can force you to dip into your savings and/or lean on family or friends for financial support and it can have a real impact on your mental health.
“Also remember that your responsibilities like raising your kids or caring for your loved ones won’t disappear overnight. We wouldn’t want them to either.
“Many of us will have thought about giving money or possibly leaving money for loved ones.
“The good news is that your future is in your hands. You have the best chance of achieving all of your retirement goals if you put your hard-earned money to work as hard as possible, as soon as possible.
Fidelity has suggested that increasing pension contributions by one percent can help women achieve their goals.
Starting to save as early as possible is important, but increasing contributions is also seen as a good way to accelerate towards a comfortable retirement.
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