High earners expect poorer standard of life in retirement

The Wealth Confidence Tracker, conducted by YouGov, found 30 per cent of respondents feel they will enjoy a diminished standard of living in retirement, compared to only 22 per cent who think it will improve.

There are also concerns for the plight of future generations - almost half believe the next generation will have a worse standard of living, versus just 24 per cent who think it will be better.

The study, commissioned by Canaccord Genuity Wealth Management, also suggests a compounding negative outlook for future generations.
The research highlights factors that high earners surveyed in Yorkshire believe will reduce the inheritance they leave to their families, with social care and care home funding, tax implications and macro-economic issues all cited as being problematic.

However despite scepticism about their standard of living in retirement, 90 per cent of respondents feel confident about their financial future, compared to just 10 per cent who are not confident.

Factors underpinning confidence levels centred around sound financial planning, with pension schemes, property investment cash savings accounts such as ISAs and bonds cited as encouraging their outlook,

Jim Meysey-Thompson, York office manager at Hargreave Hale, a Canaccord Genuity Group company, said: “While savers in Yorkshire are generally positive about their current financial circumstances, much of this confidence evaporates when looking to the future.

“Our research highlights a number of very legitimate concerns about retirement and inheritance, compounding the need to have good financial discipline and save adequately throughout life.

“There are a considerable range of factors - both personal and external - that can impact the level of income savers receive in later life. For those looking to maximise their financial stability, particularly in retirement, we recommend defining a robust plan tailored to an individual’s realistic financial goals.”

The survey was conducted among two sample sizes.

One focused on workers with an income of £100,000 or more and investable assets of less than £750,000 while the other looked at those aged 18-34 and earn £40,000 to £99,999.

The survey was carried out online.