Almost two thirds (66 per cent) of rich Britons reportedly plan to rely on additional investments beyond their pensions to support them in retirement.
A new survey found that the majority of rich Brits are highly pessimistic about state pensions, with just nine per cent believing that the state will provide enough money to live on in retirement and 42 per cent planning to rely on their company pension to provide for them.
A quarter (26 per cent) of those polled expect to release money from their property to fund their twilight years and just 39 per cent said they planned to cut down on their expenditure as they get older.
Of those wealthy Britons that do intend to cut back in retirement, a fifth (20 per cent) plan to move to a smaller house, one in ten intend to buy a cheaper car and nine per cent said they would have to cut back on life's luxuries.
Just 40 per cent of the rich Britons surveyed said that they have factored in the cost of long term care into their future financial plans, despite the fact that one in three women and one in five men is likely to need long term care at some stage of their lives.
Wealth Watch, Lloyds TSB Private Banking's research, also reveals that the population as a whole is worried about future retirement finances, with 16 per cent of the general public concerned that their finances will not stretch far enough when they retire and over half (55 per cent) admitting that they will be forced to cut back.
Mark Cheshire, managing director of Lloyds TSB Private Banking, said: "To really enjoy retirement, careful financial planning is critical. But, it's important to make sure that you've thought about long term care provision, otherwise, it could prove to be a very unpleasant financial shock. By taking advice and making wise investments, it's possible to ensure that every future eventuality is planned for and cut backs are kept to the minimum."
Brits reject pensions for alternative investments
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Brits reject pensions for alternative investments
Tue, 30 Aug 2005
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1998 - 2008 UK Pensions - Planning before, at the onset and during retirement.
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