According to the latest Great British Retirement Survey* by Interactive Investor, the rising cost-of-living has prompted many Britons to review their priorities around paying debt and saving for the future. 

The report is a timely reminder of the importance of not giving up on long-term goals, even when the short term seems uncertain. Here are some key takeaways. 

British consumers are feeling the pinch

The report revealed that high inflation is now Great Britain’s top financial concern and a big worry for 59% of people surveyed:

• The higher cost of living is impacting people’s plans to save for retirement, with 56% of respondents aged under 66 having cut back (36%) or stopped saving altogether (20%). Also, 64% of young people surveyed said they had to curtail their savings. 
• What’s more, this is having an impact on people’s mental health as well, with 65% of Brits surveyed saying they have been affected. 
• Last year’s sharemarket performance added to the pressure, prompting some who were close to retiring to push back their last day of work. 

Best not to wait for this storm to pass

Last year, a NerdWallet survey of 2,000 people in the UK found that, while nearly half of Brits have either stopped or reduced their saving, 63% of them plan to restart again in six months’ time, and 14% hoped to restart after nine or 12 months.

It’s an encouraging sign that many people understand the importance of saving for the future. However, no one knows for how long the impact of inflation is likely to stay high. And there are no guarantees that the sharemarket performance will be better this year - simply, no one knows. 

What we do know is that it’s crucial to adjust your plans to changed circumstances, rather than waiting for things to go back to ‘normal’. Reducing contributions to your KiwiSaver plan or other investments could lead to a shortage in your retirement savings. 

The other key thing is to have a diversified portfolio that suits your goals, plans, and risk profile. This allows you to spread your investments across industries and asset classes, reducing the overall risk level. Get in touch to learn more.

We’re here to help

Whether you’re considering moving to New Zealand from the UK, or have recently moved, get in touch. We can help you understand if a UK pension transfer is right for your circumstances. 

Click here to contact us or give us a call on 0800 UK 11 NZ. 

*Source: ii.co.uk/pensions/iiGBRS. Methodology: 10,000 people have been surveyed between 26 May and 29 July 2022.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance. Past fund performance is no guarantee of future returns.