9 million 'relying on a windfall' to secure their future

Nearly a quarter of people below retirement age are relying on some kind of financial windfall to fund their retirement years, according to retirement specialist LV=.

With ongoing fears about a 'pensions gap' in the UK, it seems many people don't think they are saving enough to live comfortably in retirement - and will depend on money from elsewhere to get by. A further 7% are relying on an inheritance to cover living costs in later life, while 5% are depending on the value of their home increasing.

Men are more likely to be waiting on a financial windfall: 27%, compared with 21% of women. It seems it depends on what part of the country you're from, too - 30% of Londoners believe they'll get by on a financial windfall, compared with just 15% of those in the east of England.

Ray Chinn, LV= Head of Pensions said: "It's worrying to see that so many people are financially underprepared and are relying on a windfall to secure their financial future.

"According to the report, more than two thirds (70%) of Britons expect their savings pots to be underfunded by the time they retire, or worse still have no idea if they will have sufficient retirement savings in place or not. If people want control over when they can retire it is essential that they properly plan how they will fund life after work."

An expert at debt management company Gregory Pennington commented: "It can be hard to focus on saving for retirement when it seems so far away, but it really is important that people start thinking about it if they want to ensure a comfortable life after work.

"It's likely that existing financial pressures, such as higher costs of living and debt repayments, are preventing many people from saving as much as they'd like to. But a bit of planning can help with this, and could make all the difference in the future.

"If you think your circumstances are making it hard to save for the future, it may be time to get help from an expert."

Joel Stanier