Just one in three retirement savers are confident they can keep their finances on track for the next 12 months as budgets are stressed by inflation and the eurozone debt crisis.
The over 55s are suffering from the economic fall-out the same as everyone else – while many who have already retired are feeling the pinch from the rising cost of living and low interest rates.
Few can see any light at the end of the tunnel – with many industry insiders doubtful that interest rates will change in 2012.
The Nationwide Building Society, the second largest savings institution in the UK behind Lloyds Banking Group, has forecast the Bank of England will keep a lid on interest rate increases until 2013.
The findings are part of the Institute of Financial Planning (IFP) daily poll for financial planning week.
IFP chief executive Nick Cann said: “The result proves how difficult it is for people to predict what might happen with the economy, and their own household finances, next year. Strong leadership is required to take bold decisions to improve the position with the Eurozone.
“For people in Britain who are feeling the pinch when it comes to the family budget, underpinning this uncertainty is the need to have a financial plan to work through the next few years of economic uncertainty.”
The IFP recommends setting realistic savings and spending goals for the next 12 months.
Marlene Shalton, president of the IFP said: “People do seem to be uncertain about what lies ahead in 2012, which is not surprising given the current economic climate and the difficulties facing a number of European countries.
“People can obtain greater reassurance about their own financial situation if they think ahead and create a financial plan that they can adapt and follow when times are unclear. Having such a financial plan in place can bring more certainty to people’s lives and greater peace of mind too.”
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