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Canada Life: 77% of homeowners confident of financial situation

Jake Carter

July 1, 2021

money

An estimated 77% of homeowners over 40 are confident about their financial situation despite COVID-19, according to Canada Life.

However, when looking further ahead, this group was less positive about its retirement prospects.

The data found that 16% do not feel they will have enough pension savings to fund their plans, such as paying for their current lifestyle through retirement.

Over the past 12 months, more than two-fifths (42%) of UK homeowners aged over 40 have saved more during the pandemic, at an average £2,570 more.

Those in the South East have saved the most, at an average of £3,150 while those in the East of England have saved the least, at £1,915.

In contrast, around a sixth (16%) of respondents said they have saved less, with an average reduction of £1,550.

Furthermore, 21% did not feel they would have enough to fund home improvements, a holiday or car and a third (31%) said they would not have enough pension savings to fund regular holidays or a second property.

Alice Watson, head of marketing, insurance at Canada Life, said: “COVID-19 has divided the nation when it comes to personal finances.

“Our research shows that many have been fortunate enough to have saved more this year, thanks to lower travel costs and fewer holidays.

“However, others have been facing financial difficulties, as many people navigate furlough or unemployment.

“It’s encouraging to see so many people remain confident about their current financial situation.

“However, there is clearly a shift in confidence when it comes to retirement planning.

“This is where property wealth will play an increasingly important role, as people may be unable to rely solely on their pension income.

“While saving for retirement may seem like a daunting task, considering how different types of wealth can be used during retirement is crucial.

“Speaking with a financial adviser is a sensible first step, as they can demonstrate how property wealth could be used to meet the needs of homeowners nearing retirement, helping them to reach their retirement goals.”


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