Welcome to Drewberry’s 2016 Annual Wealth and Protection Survey. It captures the responses of the 2,000 UK workers who kindly agreed to participate in the research we conducted at the end of August 2016.
As always, our findings provide a fascinating insight into the key concerns of the average British worker and include their views on key economic developments such as Brexit and the most recent interest rate cut, how they approach issues such as savings and protection and how they view their prospects for a comfortable retirement.
We think the results make compelling reading. Among other things, our research suggests that, despite the recent growth in the UK property market and the strength of the long-term returns from global stock markets, a great many UK workers face an uncertain financial future.
Our findings make it clear that far too many Britons are still bewildered by the practicalities of building up sufficient savings to fund a comfortable retirement while a great many more are relying on outdated savings products such as bank accounts or cash ISAs and even the value of their home as a means to fund their retirement.
We think our findings underline why it’s now more important than ever before to seek reliable, professional financial advice. Although relatively few survey respondents recognised the value of good financial advice, it remains by far the most effective way to avert the ‘retirement crisis’ for which so many UK workers are clearly heading.
More than three times as many people in the UK have pet insurance (23%) than income protection insurance (7%)
Only 8% of consumers believe that insurers have got better at paying claims.
1 in 5 people have no idea how they would cope financially if they suffered long-term incapacity.
Only around 1 in 10 people report having their life insurance written in trust.
Over 40% of people would seek mortgage or pension advice
Imagine that a financial adviser is able to make sense of your various pensions and savings and can create a well invested, tax-efficient portfolio that provides the optimum level of income for your retirement.
1 in 5 people are unsure how they are going to fund their retirement.
People are generally quite well informed when it comes to their State Pension entitlement.
27% of people (or over 1 in 4) believe they only need to save 5% or less of their income in order to fund retirement.
Over 1 in 5 people have never found out how much their pensions are worth.
Taking the survey median, a single life annuity for £15,000 per annum would require a 32% larger pension pot without inflation linking and a whopping 140% more with RPI linking than was thought by our survey participants.
Asked to those who thought the BoE was right to cut rates
Asked to those who thought the BoE was wrong to cut rates
18%, or nearly 1 in 5 people, admit to having a secret bank or savings account their partner doesn’t know about.
Nearly 1 in 10 admit that their ‘secret account’ is in case of a breakup.
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