Legal & General Retail Retirement (LGRR) warned that 1.4 million workers over 50 are saving £ 155 less per month for their retirement
Savers have been forced to rethink their retirement and long-term care plans as they count the void Covid-19 has put in both their budget and later life plans.
The LV = Wealth and Wellbeing Monitor, which surveys over 4,000 UK adults every three months, found that 60 percent, or 31.6 million UK adults, were concerned about moving to a nursing home after seeing Covid-19 contract had spread them.
Those over 55 were the most concerned, while 70 percent of those with wealth between £ 100,000 and £ 5 million – the so-called mass wealth – were the most determined to stay in their own homes.
Legal & General Retail Retirement (LGRR) warned that 1.4 million workers over 50 were saving £ 155 less per month on their retirement, although this was less severe than the £ 200 per month average at the height of the pandemic.
L&G estimated that cutting payments could delay a person’s retirement by four years.
Women are most at risk of deficiency. More2life’s research has shown a growing gender gap, which, taking life expectancy into account, averaged £ 183,936 in 2021 – an increase of £ 26,673 year-on-year since 2020.
The provider said women need to work an average of 54.5 years to achieve the same level of retirement savings that a man can achieve in 40 years. 30 percent of women said their financial situation had worsened since the beginning of the pandemic. compared to just 24 percent of men.
So while men over 55 have or expect an annual retirement income of £ 20,712, women will receive around £ 14,964.
LGRR has started a retirement course “Spend a Day” through The Open University. Emma Byron, managing director of LGRS, said savers could add an extra £ 41 a month to their pension to make up for their shortfall.
“When we are looking at a recovery period, the best thing people can do is commit to spending a day sorting their affairs in order to better understand the options available to them. We offer a range of resources, including a free online course that can be completed in an afternoon. “
Figures from the Equity Release Council showed that annual lending was nearly £ 4 billion in 2020. Clive Bolton, LV = Managing Director, Savings and Retirement, said his research showed that instead of moving into nursing homes, an increasing number of older people were taking equity exemptions to care for caregivers and the cost of home remodeling for medical reasons to pay .
Nicola Schutrups, executive director of The Mortgage Hut, said the equity release will also be used to close the pension gap, but savers need to weigh their options carefully.
She said most mortgage lenders will limit the loan-to-value ratio (LTV) on a debt restructuring to 75 percent of the property’s value.
“Some specialist firms look at 85 percent or even 90 percent of the LTV, but you need to use an experienced broker to hedge these deals.
“When you apply, you will be asked for the purpose of the equity release – and this could change the final LTV of the mortgage. Generally, lenders offer larger amounts for loans that improve your property and lower amounts for more frivolous expenses.
She added that other factors that may affect the outcome of your debt restructuring application are your age – many lenders do not consider applicants over 75 – your employment status; Your credit history; the amount of the loan application as well as the age, location and condition of the property. “