Lawyers worry over retirement means, survey reports

Nearly four fifths of lawyers do not know what income they will have in retirement, and most of these fear it will not be enough to live comfortably, according to a new survey. 

Research carried out across the UK for mutual financial services provider Wesleyan found that more than a quarter of the profession (26%) plan to work past their retirement age, that 79% cannot say how much income they will have in retirement, and that 70% fear it will not be enough for a comfortable old age. Fewer than 20% now plan to retire early, down 10% from a similar survey three years ago.

On average, they thought they would need £35,680 a year to live on. However, only 30% are relying just on a pension for retirement income, with one in six (17%) planning to use the equity in their property for additional financial support.

The research also found that 44% of lawyers reviewed their retirement planning less than once a year, and of these, more than half either could not remember the last time they reviewed their plans, or had not done so since joining their pension scheme.

Samantha Porter, Wesleyan’s group sales and marketing director, commented: “The key to a successful retirement is planning ahead. Lawyers should think about the kind of lifestyle they want in retirement and how much income they will need to finance that. Once they have a plan in place they should review it at least annually.

“There has been a raft of changes in the pensions environment in recent years and these could all impact final retirement income.

"People often overestimate how much cash they will need in retirement, but they really should understand how much income their pension plans will generate.”