It’s time to talk about work, life and making the most of our longer lives

17 July 2023 , 13:45

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To enjoy fulfilling longer lives, we need to talk more about work, retirement and savings. It could be the most important conversation you’ve never had

Whatever your plans for retirement - if you even plan to retire at all, it’s important to be prepared for your later years and take time to really think about all the options open to you.

Life is very different today from previous generations - we are living longer, choosing different paths to a traditional one. You may choose to work longer, start a whole new career later in life, travel or just enjoy a quieter life closer to home.

It is the age of the sandwich generation, where many people are caring for elderly parents as well as children, and could either have more financial freedom or find it harder to make ends meet. While retirement may be the furthest thing from your mind, the conversation is an incredibly important one.

In the current financial climate it is even more vital to consider the longer term and what happens once you finish working, even if you are not sure exactly what that will look like.

How we think about traditional employment, retirement and savings needs to change in order to be prepared and you can take steps to take control over how you live a better, longer life, with a little preparation and support.

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A new heatmap, the first of its kind and created by Phoenix Group, has exposed regional imbalances in preparations for retirement, as the UK grapples with addressing the pensions savings gap. The statistics are based on the answers of 2,500 people over 45 across the UK who were polled by Phoenix Insights, a longevity think tank set up by Phoenix Group to help rethink how we respond to our longer lives.

According to those polled, London, East England, South East, Scotland and Northern Ireland have the highest average pension savings among UK workers aged over 45, while the North West, Yorkshire and Humberside, East and West Midlands and the South West having the least pension savings.

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The statistics show you are not alone if you have put off talking about things. It may well feel scary, or the idea of pensions may be confusing, but you don’t necessarily need to get into the technicalities, but just start giving it thought, and thinking about what you may want to do, the challenges you may face and whether you are really prepared for them.

Phoenix Group, which is the UK’s largest long term savings and retirement company, says that we are on the cusp of a huge shift in how we need to think about how and when we learn and study, work, earn and save, care for others, and rest and play. Our own journeys to retirement won’t look anything like our parents’ or grandparents’ did.

Phoenix Group’s Patrick Thomson, head of research analysis and policy at Phoenix Insights, said a one-size-fits-all approach is not the right one. People across the UK are living longer lives and most people are not saving more to reflect this.

“Different parts of the country are facing very different challenges, whether that’s the cost of living, opportunities at work, or access to information and advice.”

With one in three children born in the UK today having a good chance of living to 100, it’s likely there will be more working-age adults caring for parents, grandparents, children or grandchildren

He said everyone needs to talk about the UK’s regional pension savings gap and he would like to see urgent action from government and employers at both a local and national level.

“We must look at better opportunities for employment and savings, and to make it easier to save through reducing the age and earnings threshold for auto-enrolment to increase pension participation.”

Phoenix Group wants to use the heatmap to open up fresh debate and inspire decision makers and regulators to take action to make quality longer lives a reality for all. It is also encouraging individuals, employers and the government to take a closer look at financial security.

Many of those polled share the same concerns as they financially prepare for retirement, and less than half (45%) felt comfortable talking about how they’re doing it. Many do not know where their retirement income will come from, while 38% polled will rely on their own private or workplace pension and 31% on the state pension.

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A high proportion of people polled believe they will need to continue working beyond the current state pension age of 66, with just over half (52%) of those in the North West and Yorkshire & Humbersideworried they will need to work past the current state pension age.

Visit Phoenix Group's website to find out more about making the most of our longer lives.

Ginette Davies