The introduction to this report outlined the myriad of challenges facing the UK as we look towards 2040. The ageing population and the fact that, according to Public Health England, we can expect to live over a fifth of our lives in poor health, is putting severe strain on the social care system.
Within this context, our findings reveal a number of worrying trends. The long-term care situation is already having (and will continue to have) a significant impact on generations of retirees to come, and their families.
Looking specifically at the next generation of retirees (Generation X+), our research points to a sharp decline in confidence in being able to save sufficient amounts for retirement. However, of greater concern should be that many are sleepwalking (or have no alternative path to follow) into the same problems starting to affect Current Retirees – through:
- Failing to give due consideration to future long-term health costs;
- Underestimating the required level of savings needed to live comfortably in retirement;
- A lack of understanding as to how long-term care is funded;
- The assumption that the NHS or social system will come to their aid.
Please download Our Future Financial Lives report for additional insight into how consumers perceive these issues and financial institutions.