Just a fifth of UK savers (19%) have fully considered getting a serious illness in their retirement plan, according to research by consultancy Barnett Waddingham.
Its At retirement reckoning report, which surveyed more than 5,000 UK employees, also found that 25% of respondents under the age of 50 have prepared for this possibility, compared to just 16% of those aged over 50. Two-fifths (43%) of this older age group have thought about it but not included it in their retirement planning, and 32% have not considered it at all.
Just 17% of all respondents have considered the possibility of having to go into care and have reflected that in their retirement plan, with 14% of those aged over 50 and 22% of respondents under the age of 50 doing so. More than one-third (39%) of over-50s have thought about it but not included it in their planning, while 35% have not considered it at all.
A fifth (21%) of parents have fully planned for their children needing urgent financial support during their retirement, with 30% of under-50s and 16% of those over 50 doing so.
Meanwhile, 12% of respondents have planned for their parents needing urgent financial support while they are retired, including 20% of those under-50, and just 7% of over-50s. Half (52%) of this age group said their parents needing urgent financial support is not something they need to consider, while 18% have thought about it but not included it in their plan.
Mark Futcher, head of defined contribution (DC) at Barnett Waddingham, said: “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. 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. Pension providers are the most popular place for advice for over-50s, which means they have an urgent responsibility to offer fulsome, understandable, and targeted support.
