Financial Empowerment for Unprepared Retirees
People across the world are not prepared for retirement and financially unequipped for the future. Brands should step in to provide digital services offering reassurance and support.
An ageing population and shift in responsibility to individuals saving for themselves is putting people under financial strain in their later years, according to Scottish investment company Aegon's Retirement Readiness Survey. Stylus highlights the survey's findings:
- Growing Older: By 2050, the global population of people aged over 60 is expected to reach 2.1 billion, more than 10 times the size it was in 1950. While tech and medicine developments have increased life expectancy by 27%, this is placing a huge financial strain on social security.
- Burden Shift: Governments and employers used to prepare people for retirement, but now the onus is shifting to individuals. Globally, government benefits have reduced by 38% and only 43% of employers offer a retirement plan that includes an employer contribution.
- Expectations Vs Reality: Workers worldwide predict they'll need 68% of their current income upon retirement, but only 25% expect to achieve this. One-third of workers have a back-up plan if they need to stop working earlier than anticipated, yet 39% of retirees retired sooner than expected due to ill health.
There's an opportunity here for financial brands to offer intuitive services that help people approaching retirement spend their money more effectively. A good example is US fintech start-up United Income's platform, which provides holistic financial planning and investment management, and creates personalised spending projections with tailored saving recommendations.
For further information on the companies empowering consumers to make better financial choices, see Fast-Forward Finance.