Home » Finance » Personal Finance

Britons Need To Take 'Personal Responsibility' For Finances

Dec 7, 2007
Many Britons could be on track to find themselves coming under financial strain, according to new figures.

In research carried out by Abbey, more than half (53 per cent) of adults claim that they are unaware how much money they would require to match the lifestyle they desire in retirement. The study also indicated that women are most likely to not know the amount of cash they need after giving up work, with 63 per cent of women guessing the sum incorrectly in comparison to 44 per cent of men. Meanwhile, findings from the company revealed that 53 per cent of those over the age of 65 - the majority of whom Abbey claims have largely already retired - are uncertain as to how much money they require.

As a result of experiencing difficulties with money pre-retirement, it is possible that a lack of understanding could cause many consumers to develop problems handling their finances once they give up work, due to a shortfall in pension funds. In turn, this may see many people come under strain when paying utility bills, personal loans and other areas of demand on their spending in later life.

Research from the firm showed that 12 per cent of Britons believe that a lump sum of 100,000 pounds or less will provide them with enough money to lead a comfortable retirement. However, Abbey reported that in purchasing an annuity at this price would see the average retiree have an annual income of 7,329 pounds - a figure below the typical annual earnings of people from countries such as Barbados, Puerto Rico and Hungary.

Meanwhile, money management difficulties could be even more pronounced for the 16 per cent of people who state that they can retire on 50,000 pounds or under. Should such consumers choose to get an annuity for this figure - it was suggested that the most money they would be able to get from it would be 3,568 pounds per year - about 304 pounds each month. Consequently, such a figure may see them develop difficulties in paying for utility bills and food, in addition to making repayments on personal loans, overdrafts, credit cards and other types of borrowing.

Reza Attar-Zadeh, head of savings for the financial services firm, commented: "Clearly Brits are not saving enough for their retirement. This is of particular concern, with the move from final salary schemes to money purchase schemes, which means increasingly people need to take personal responsibility for saving for the future."

As a result, those people worried about their ability to save for a pension that will afford them a comfortable lifestyle after they retire might wish to consider taking out a loan for debt consolidation purposes to help free up disposable income. In addition, such a loan could be useful for those who have already stopped working. Studies carried out by Key Retirement Solutions indicate that two-thirds of consumers over the age of 60 are in some form of unsecured debt. Overall, the average pensioner owes some 9,098 pounds via personal loans, while the average person within this demographic has an average unsecured debt of 35,480 pounds. Consequently, applying for a consolidation loan could help pay off a number of debts quickly.
About the Author
Steve Smith writes for 1 Stop Finance Shop. A one stop shop for all your bad credit loans, debt consolidation loans and personal loans.Visit Today
Rating:
Please Rate:
(Average: Not rated)
Views: 162
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources