How do people feel about work and Financial Planning

How do people feel about work and Financial Planning
How do people feel about work and Financial Planning

Article by Phil

How do people feel about work and Financial Planning?

Accountancy firm PWC have conducted a survey into people’s attitudes to work and their expectations. (reported in IFA Magazine 20/6/23) It makes for interesting reading. In the UK they found that:

  • 25% of the workforce expect to change jobs in the next 12 months.
  • 12% of workers have more than one job.
  • Over one third said that they will ask their employers for a pay rise.
  • 20% say that they are over worked
  • And 21% are unhappy at work.
  • Nearly half of workers say that they have no money left at the end of each month after paying their bills.

It doesn’t paint a happy picture.

Employees are also concerned about work and financial planning for their retirement. According to the latest survey from Aviva (FT Adviser 26/6/23), they found that:

  • 80% of employees said they would like more support from their employers to understand their pensions
  • Of the 80%, 40% said that they wanted to know how they could build up their pensions
  • And 45% wanted to know how much they needed to retire (the age-old question)
  • Only 20% of employees said they thought their employer provided enough support and information.
  • Funnily 20% of employers said they did more than the minimum for their employees – a mismatch here then.
  • As we’ve seen before, 30% of employees didn’t know how many pensions they had or how to track them down.

In response to these concerns the Department of Work and Pensions (DWP) has just launched a new website Midlife MOT, which offers guidance to employees on a range of subjects, including how their pensions work and financial planning.

Hargreaves Lansdown also found that:

  • 20% of employees wished they had paid more into their pensions, and
  • 12% wished they had known more about their pension options, but surprisingly
  • 44% said they had no regrets about their pension planning. (Perhaps they work for the civil service!)

But the current cost of lockdown climate hasn’t hit everyone. According to iSIPP 70% of over 55’s have continued to save into their pensions.  This is not what every survey has found as we have reported.

It’s the younger savers who are cutting back. 40% of under 35’s have cut back on their pension contributions. The figure is 33% for 35- to 45-year-olds.

But not everyone is getting advice. Just Group found that 41% of pension drawdown products were “sold” to people not taking advice in 2022, compared with only 34% in 2018. Put the other way round. 66% of people retiring in 2018 took advice, but only 59% in 2022.

The situation is not helped by the Department of Work and Pensions (DWP). They estimate that over 200,000 people’s state pensions have been underpaid, with over £2 billion due. The underpayments result from poor record keeping, especially for non-working women whose National Insurance records haven’t been properly maintained. Most of those owed money are now in their 60’s and 70’s. the average debt is thought to be over £5,000 per person. The DWP says that it will be writing to people who may have been underpaid later in the year to start the process of redress.

 

Work-and-financial-planning
Financial planning in Burnley | Nelson | Cone | Barnoldswick | Whalley | Clitheroe | Lancashire

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