Feb. 24: BEST FROM THE BLOGOSPHERE

February 24, 2025

Serious illness not factored into many Britons’ retirement plans: study

One of the unfortunate possible side effects of having a longer lifespan could be that you will develop a condition that will require long-term care.

Yet in the U.K., only about one-fifth of retirement savers (19 per cent) are factoring that possibility into their savings plans, reports Zoe Wickens of Employee Benefits.

She writes that research from Barnett Waddingham found that “25 per cent of respondents under the age of 50 have prepared for this possibility, compared to just 16 per cent of those aged over 50. Two-fifths (43 per cent) of this older age group have thought about it but not included it in their retirement planning, and 32 per cent have not considered it at all.”

In fact, she continues, only 17 per cent of respondents to the survey have “considered the possibility of having to go into care.” A surprising 39 per cent of respondents say they thought about it but did not factor it into their plans, and 35 per cent “have not considered it at all.”

Interestingly, while 21 per cent of respondents “have fully planned for their children needing urgent financial support during their retirement,” only 12 per cent are planning to provide financial support to parents during retirement.

Barnett Waddingham’s Mark Futcher states in the article that “poor planning is almost as bad as not saving. The evidence shows we’re at risk of waving goodbye to a lost generation of retirees, cut adrift by insufficient planning, a myopic attitude to the harsh realities of financial shocks, and an unwillingness or inability to ask for help.”

“The industry needs to urgently engage and educate people, especially those in their 50s and above,” he continues. “It’s not just about instilling in them the importance of planning but about making sure they have the necessary tools to do so and a true understanding of the hurdles ahead and their familial financial ecosystem.”

He concludes by recommending people look for professional advice in their retirement planning and saving.

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