Waiting for Windfalls

LONDON, March 17, 2010 - Millions of Brits are gambling with their future by relying on a lottery
win or inheritance to fund their retirement, according to a new study.

Instead of putting money into a pension or savings account ready for when
they stop work, more than a third are waiting for some inheritance money, and
one in ten are hoping for a big lottery win.

And six per cent even plan to marry someone rich instead of actually
having to save for the days when they no longer work.

Other ways people are planning to pay for their lifestyle once they hit
retirement age include downsizing to smaller property or simply continuing to
go to work.

The study of 3,000 Brits revealed that 51 per cent are worried about how
they are going to fund their retirement years.

And four in ten haven't given any thought to what they are going to do
financially when they finish work.

The positive news is that half of the population are making more concrete
plans and are going to invest in a private pension, while 58% have put money
into a savings account.

Spokeswoman Michelle Cracknell from Skandia, which carried out the poll,
said: "If you know you are in line to inherit money or property from family
members, it can certainly make you feel more relaxed about your retirement
years.

"But it's worrying to think that so many people are relying on things
like inheritance and big money wins to help them when they stop work.

"Things can always change and the inheritance may go down in value or
even disappear altogether, and the lottery and competition prizes are a
pipe-dream for most of us, so it's always good to have a real plan in place.

"For many people, sitting down and planning how you are going to finance
a retirement can seem like a chore and many are simply hoping for the best.

"However, it's important to give it some thought to make sure you have a
plan in place to ensure you are able to have an enjoyable lifestyle once you
no longer have to worry about getting up for work each day.

"If you don't understand financial products you can still take control by
going to see a financial adviser."

Half of those polled even admitted they feel like their retirement is too
far off to start thinking about it yet.

And while the average Brit starts planning for the end of their working
life around the age of 32, more than one in ten will leave it until they
reach 50.

But researchers found that many will need to start planning sooner rather
than later as the average Brit thinks they will need an annual income of more
than GBP22,000 to fund their retirement lifestyle.

One in five even hope to retire by the time they reach their fifties, but
in reality, just 11 per cent think this is a realistic option.

Top ten ways to fund retirement

1. Savings accounts (58%)

2. State pension (55%)

3. Private pension (52%)

4. Continuing in employment (44%)

5. Inheritance (37%)

6. Investments such as shares, gilts bonds etc (29%)

7. Downsizing to a smaller property (17%)

8. Lottery wins (11%)

9. Premium Bond wins (8%)

10. Marrying someone rich (6%)

Further information available:

The data in the above release is also available by age, city and income.
If you would like this breakdown of data or any further information then
please contact Henry Chan on +44(0)2380-726-519 or henry.chan@skandia.co.uk

The data in the above release is also available by age, city and income. If you would like this breakdown of data or any further information then please contact Henry Chan on +44(0)2380-726-519 or henry.chan at skandia.co.uk