New research shows
Still renting, having little or no pension and worrying about the legacy they’ll leave their children is the reality for the average 50-something Brit, national research shows.
The study, from Nationwide Financial Planning, polled 2,000 people in their 50s and is the final in a series of reports looking at the financial and social life of different age groups. It forms part of a wider focus Nationwide has on the aspirations and needs of UK consumers.
While many of those in their fifth decade are feeling the pressure of supporting family, emerging health worries and lack of financial security – a third (32 per cent) have more than £10,000 in savings and four in ten (40 per cent) have cleared their mortgage.
Heather Small, 52, singer from classic 90s house band M People said: “The research shows how hitting your fifties is a real balancing act, with responsibilities on all sides – putting in the hours at work, looking after grown-up children but also ensuring you take care of your own parents. It’s no wonder that money is tight in this age bracket, although what is good to see is that we are an aspirational bunch. Despite pressures, we keep our dreams in our back pockets – from dream holidays to learning a new language”.
A good proportion of those in their fifties are unprepared financially for the future with more than half (52 per cent) indicating they have not yet made a will, while more than a quarter (28 per cent) don’t have a pension. Of those that do have a pension, nearly one in ten (nine per cent) only began saving into it once they reached their forties.
According to the research, mortgage and rent payments are one of the biggest expenses for those in their 50s. Nearly a third (28 per cent) rent a property, while the same percentage (28 per cent) are still paying off their mortgage. And while four in ten people (40 per cent) own their home outright, the average 50-something has £2,949 remaining on their mortgage.
When it comes to living arrangements, most live with their partner (65 per cent), although 3 per cent still live with their parents, while nearly one in five (19%) live on their own.