Millions gamble on lottery to pay for retirement
24 May 2011
Around three million* people who are not retired are relying on a lottery win to pay for their retirement, and a similar number** are counting on an inheritance windfall, a new survey reveals today.
The research by YouGov for the National Association of Pension Funds (NAPF) asked people who have not yet retired to list the different ways they are planning on funding their retirement.
Nearly half (49%) said they plan to do so through a workplace or private pension. But a striking 8% - or just over three million people by NAPF estimates - said they are relying on a lottery win to fund their older age, while a similar number (9%) are banking on an inheritance windfall.
More than one in five (21%) are planning to save into an ISA, 17% plan to invest in property, and just over a third (34%) said they are relying on the state pension.
Joanne Segars, Chief Executive of the NAPF, said:
"It’s deeply unnerving that millions of people count a flutter on the lottery as part of their retirement plans. A financially secure old age cannot be left to chance. The only certainty is that many will miss the jackpot and wind up in pensioner poverty.
"The UK is facing a pensions saving crisis and we can’t let it get any worse. A small, regular payment into a pension can make a big difference, especially with the help of employer contributions and tax breaks. A simpler, better state pension is also a must.
“Many people take a portfolio approach to saving, so hopefully people aren’t relying solely on a lottery win or the death of a relative to get them through retirement. But the fact remains that most people are not saving enough, and are in for a deep shock come retirement.”
Notes to Editors
1. Joanne Segars is available for interview.
2. The survey figures are from YouGov Plc. Total sample size was 4177 adults. Fieldwork was undertaken between 21.01.11 - 24.01.11. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+). The full questions are available from the NAPF press office.
3. * Based on ONS GB 18+ population of 47,319,300 of which 37,855,440 are not retired - 8% of these are relying on a lottery win to find their retirement.
** Based on ONS GB 18+ population of 47,319,300 of which 37,855,440 are not retired- 9% of these are relying on future family inheritance to find their retirement.
4. Respondents were able to name more than one method of planning the funding of their retirement.
5. The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,200 pension schemes with some 15 million members and assets of around £800 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector.
Paul Platt, Head of Media, NAPF, 020 7601 1717 or 07917 506 683, [email protected]
Christian Zarro, Press Officer, NAPF, 020 7601 1718 or 07825 171 446, [email protected]