Consumer: Concerned about retirement income?

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A new study has revealed that more than half of Leeds residents are concerned about their finances once they finish working.

The survey, by Local Financial Advice, found that 54 per cent were worried about their retirement income, despite the fact that the city has the highest number of residents investing in stocks and shares compared with the rest of the country. 15 per cent of those surveyed said they would expect to have a limited income and would have to budget very carefully, while 15 per cent were seriously concerned about even making ends meet.

A further 24 per cent said they thought they would be secure but had worries about running out of money in the long term. Just 11 per cent thought they would be very well off in their retirement.

The study also showed that people in Yorkshire have the biggest concerns about retirement income compared with anywhere else in the UK, with Sheffield and Leeds residents combining at 16 per cent, above the national average of 13 per cent.

Paul Walsh, CEO of Local Financial Advice, said: “It’s clear from these results that Leeds is a city lacking in financial confidence.

“While the fact we have so many people investing in their futures is an incredibly positive thing, the pessimism we see from many surely means a little guidance is necessary to boost those confidence levels.

“Here at Local Financial Advice we try to show people the importance of professional advice, as it can have an extremely positive income on people’s financial situations.”

Despite the worries, 60 per cent of people in Leeds said they were proactively saving for the future, through a mixture of pension investments, property purchases, stocks and shares and savings for their dependents. 10 per cent are investing in stocks and shares - double the number than in Sheffield, which showed just 5 per cent of financially savvy people are investing in stocks and shares.

The percentage of people who are concerned about making ends meet tallies up with the percentage of Leeds residents who are actively paying off debt, suggesting it could be affecting the view of their financial situation.

The study also quizzed people about what they are currently saving their money for.

Around 22 per cent are saving for their pension, 20 per cent are currently saving to buy property and 15 per cent are saving for their dream holiday.

Just over four per cent are squirrelling funds away to pay for a wedding.

Visit: www.localfinancialadvice.co.uk/yorkshire/leeds to get in touch with a financial advisor in your area.

How much do you need to retire?

According to NOW: Pensions an annuity - which delivers a guaranteed income for life - with a £100,000 pension pot at retirement would produce a fixed income of between £5,000 and £6,000 a year. To build up a pension pot of £100,000, you would need to save around £120 a month over 30 years and £70 over 40 years, including investment growth. People making National insurance contributions might also qualify for a full state pension, which is currently worth around £6,000 a year.