Home Finance Pension planning warning as more people know offside rule than retirement age

Pension planning warning as more people know offside rule than retirement age

Many Brits know the rules of football better than the rules of retirement, leaving them at risk of poverty in old age.

As millions tune in to the Euros, which start with Scotland’s game against Germany this evening, almost three in five (59 percent) can explain football’s ‘offside rule’.

At the same time around half (53 percent) knew what VAR stands for and the rules around extra time.

By contrast only two in five (40 percent) know that 66 is the age you can access the state pension, while 38 percent thought it was much earlier.

Just under one in four (23 percent) accurately identified the value of the full state pension with some thinking it was £60 a week higher than the true figure.

The figures come from research by Aviva who found widespread ignorance and confusion around retirement plans.

It said: “Millions will watch the start of the UEFA Euros 2024 championship this weekend; but millions of the same people may be flying blind towards their retirement.”

Less than half (46 percent) of UK adults are confident that their retirement plans are on track and this confidence appears to decrease with age.

Only one in five (18 percent) 25–34-year-olds say they are ‘very confident’ their retirement plans are on track – this drops dramatically to just 7 percent of those aged 45-54 years old.

Just under one in four (23 percent) can correctly identify the value of the full state pension (£221.20 per week). One in five (19 percent) predicted that they would be between £20 – £60 better off each week (citing £241.20 – £281.20 as the payment).

Aviva said a record number of people saving for their retirement through a private pension – more than 22 million across the UK. This is largely due to the introduction of auto-enrollment into workplace schemes.

Alistair McQueen, head of savings & retirement at Aviva, said: “Football is our national game. Millions love it. And even those who don’t seem to have a pretty good understanding of its rules. Sadly, the same cannot be said about our retirement plans.

“Most of us are now actively saving for our retirement thanks to auto-enrolment.

“Many can hopefully look forward to a lot more cup finals in our retirement. By taking some simple steps today, it can help us take control of our retirement plans and allow us to keep cheering our teams with confidence, for years to come.”

Aviva’s three key retirement planning ‘rules of thumb’ to be a winner in old age:

Aim to begin saving for your retirement at least 40 years before your target retirement age.

Aim to save at least 12 percent of your earnings into your pension – and remember this 12 percent can often include contributions from your employer.

Aim to have a pension fund worth at least ten times your salary by the time you reach your retirement.


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