Millions of over 55s are hoping for a big win on the lottery to pay off their debts and fund a comfortable retirement, according to new research.
Almost three out of 10 of retirement savers believe winning the lottery is the only way they can improve their finances, according to the Institute of Financial Planning (IFP).
For many, a smallish windfall of £5,000 would be life-changing – allowing more than a third (38%) to repay debts, while 29% would save the cash.
Overall, retirement savers told the IFP that they will face a stark retirement without enough money to fund a basic standard of living.
Only 14% of women and 23% of men are satisfied with their financial circumstances.
Around a third of workers (31%) are not contributing any money to a pension – and 14% have no money set aside in a pension – while 10% of workers believe they will never save enough to let them give up work.
The findings herald the IFP’s financial planning week (November 21 – 27, 2011).
Many cite the country’s economic woes as the main reason they cannot save – instead their money is eaten up by inflation and paying debts.
Money issues are making many over 55s unhappy – with 77% confessing they would feel better if they had more cash.
Nick Cann, the IFP’s chief executive officer, said: “These findings present a worrying picture for so many people who are facing an uncertain future yet not taking appropriate steps to improve their situation. There seems to be awareness but no link to action.
“Financial planners can help but the challenge is to ensure a greater engagement with the consumer so that they have confidence in the route that they are taking. During Financial Planning Week we’re providing practical tips, tools and information that people can use to improve their finances and get a clearer understanding of the choices that they have.
“These things can hopefully help them to take simple steps which will improve the quality of their lives as a result.”
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