10 December 2007

 

INFLATION MOVEMENTS TOP THE LIST OF RETIREMENT FEARS FOR WORKING 60-SOMETHINGS

 

·         People in their 50s worry about falling ill and not being able to work

·         40-somethings worry most about losing their job when it comes to their retirement provision

·         Inflation movements are biggest worry for the working 60-69-year-olds but at bottom of top ten concerns for people in their twenties

 

New figures from Alliance Trust Savings, the financial services provider, reveal that the closer people get to retirement, the more they fear the impact of potential inflation movements on their retirement provision.

 

Alliance Trust’s annual Retirement Confidence Index* shows that inflation movements are the biggest retirement worry for people nearing life after work, while the very same factor is listed as low as 10th place for people at the beginning of their working career (aged 20-29). The index reveals that for working people in their sixties the top three threats to having a comfortable retirement are inflation movements (28%), followed by falling ill and not being able to work (24%) and a stockmarket crash (21%).   

 

However, only 16% of 50-somethings worry about the impact of inflation movements and their top three worries instead are falling ill and not being able to work (28%), not saving enough for retirement (25%) and losing their job (21%). This compares to 33% of 40-49 year-olds who state job loss is their main retirement concern, followed by not saving enough for retirement (32%) and falling ill and not being able to work (30%).

 

Hyman Wolanski, Head of Pensions at Alliance Trust, said: “It is only natural for people nearing retirement to worry more about the impact of inflation than younger generations. As your retirement gets closer then  inflation understandably becomes a real concern.”

 

“The important thing to realise is that there are many different pension investment products on the market, that can help savers to protect their pension savings from the ravages of inflation. Pension planning is an ongoing process, and it is vital people take their changing circumstances throughout their life into consideration when choosing the right pension arrangement for them.”

 

 

- ends -

 

 

Contacts

Jane Holligan, Media Relations Manager          Anna Schirmer/ Stuart Lerman/ Anna Moulds

Alliance Trust                                                   Lansons Communications

Tel  +44 (0)1382 306064                                   Tel  +44 (0)20 7490 8828

Mobile  07745 783212                                      Email  alliancetrust@lansons.com

Email  jane.holligan@alliancetrust.co.uk      

Web  www.alliancetrust.co.uk 

 

 

 

Notes to editors

  1. *Alliance Trust’s annual Retirement Confidence Index is based on a You Gov Survey of 2,552 adults aged 18+.  Fieldwork was undertaken between 16th - 21st May 2007.  The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).

 

 

Which of the following do you think may be the biggest threat to you having a comfortable retirement?

 

20-29

30-39

40-49

50-59

60-69

1

Not putting aside enough for the long term (41%)

Not putting aside enough for the long term (39%)

Losing my job (33%)

Falling ill and not being able to work (28%)

Inflation movements (28%)

2

Falling ill and not being able to work (27%)

Losing my job (35%)

Not putting aside enough for the long term (32%)

Not putting aside enough for the long term (25%)

Falling ill and not being able to work (24%)

3

Losing my job (27%)

Falling ill and not being able to work (27%)

Falling ill and not being able to work (30%)

Losing my job (21%)

Stockmarket crashing (21%)

4

Company pension going bust (17%)

Company pension going bust (16%)

Company pension going bust (18%)

Inflation movements (16%)

Property market crash (18%)

5

My pensions provider going bust (16%)

Property market crash (14%)

My pensions provider going bust (15%)

Stockmarket crashing (14%)

Not putting aside enough for the long term (17%)

My pensions provider going bust (17%)

 

 

  1. Alliance Trust is the brand name of Alliance Trust Savings, a financial services company that offers                  investment dealing, self-invested personal pensions (SIPPs) and a choice of other investment accounts such as ISAs and PEPs. Alliance Trust Savings and its subsidiaries administer around £5bn on behalf of more than 46,000 customers (as at 31 July 2007). Alliance Trust Savings is a wholly-owned subsidiary of Alliance Trust PLC.

 

  1. Photographs of Hyman Wolanski are available.