A survey conducted by Perfect Choice Funerals this week has revealed that only 45% of people aged 60 and over have planned their retirement fund to include funeral expenses. 1,708 Brits were asked about their savings, and if they’d put anything away towards their funeral. The majority had no plans or funds in place, citing a variety of reasons as to why. The majority said they couldn’t afford it, with 58% claiming “financial strain” left them with nothing spare. The second highest figure was those who thought it was too early to be planning so far ahead, at 51%, and 41% had decided to leave the decision-making up to their next of kin. 19% didn’t view saving for funeral costs as their responsibility and 17% couldn’t contemplate it because they were “too fearful.”
With impartial pensions advice becoming an option for all in 2015, thanks to the new rules outlined in the Chancellor’s Budget in March of this year, many are analysing their retirement finances in greater detail, but perhaps not enough are considering those inevitable funeral costs. Survey results published today by True Potential have revealed that out of the 8000 surveyed, the majority had a pension pot of only £120,213 on average, which would provide an annual income of around £6,011. Considering that “a 65-year-old man can expect to live until 83 while a 65-year-old woman can hope to live until 85”, the nation is not saving enough for our now generally longer lifespans.
One reason for these low numbers could be that some aren’t taking alternative finance opportunities to maximise their pension pots. If dissatisfied by their money stagnating in a savings account, looking into Peer-to-Peer investment opportunities can have surprising benefits. Though capital is at risk and not covered by the FSCS, Wellesley & Co.’s funds are covered by their Provision Fund, a discretionary fund that the shareholders created for the purpose of compensating customers if a borrower fails to repay their loan.
Investors can earn between 3% and 6.76% interest on their money when investing in Wellesley & Co. These interest rates depend on how long an investor places funds with the company, which can be a welcome prospect for those planning their retirement and considering all the necessary costs.
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