Almost a third (31%) of British adults do not know how they will cover their financial needs in later life, according to National Savings & Investment’s (NS&I's) quarterly savings survey.
Of those who have yet to consider financial planning for the future, 23% cited a lack of time as the reason they had not considered future financial needs, while 19% cited a preference for taking a short-term view of their finances.
Twelve percent of British adults said that they still have plenty of time and didn’t feel that they, while 7% did not consider planning ahead important.
John Prout, NS&I Retail Customer Director, said:
"Planning financial needs for later life requires careful consideration in plenty of time. Understandably many people don't like to think about growing older and the possibility of needing long-term care one day. It can be a distressing and emotive issue to talk about. But with people living well into their eighties, many more of us are likely to need care in the future, and are likely to need to care for others also.
“Getting the right information as early as possible is to vital to making sure you get the best possible care you can in later life."
The survey also found that while more than a third (34%) of British adults expect to be responsible for caring for a relative or other dependent in retirement, 31% don’t know how they would cover the cost of eventualities such as caring, funding their own long term care or covering the cost of long term illness.
In spite of this 54% have started to consider their long term financial needs, and more than a quarter (27%) have started to put their financial plan into practice.
Tish Hanifan, Chairman of the Society of Later Life Advisers (SOLLA), said:
"This research reflects the experience of many specialist later life advisers whose clients are primarily concerned with being able to both enjoy their retirement and continue to be able to make choices around their care needs.
“Undoubtedly the way to achieve this is to begin to factor the costs of having the kind of retirement you want into your financial planning as early as possible. An important starting point is for the consumer to have access to as much information as possible. Informed consumers are best able to make the right choices."