Yet it seems many people are still burying their heads in the sand when it comes to their financial situation once they have stopped work.
New research suggests that one in 10 workers, or around five million people, are counting on an inheritance pay-out to fund their retirement.
The Share Centre conducted research with more than 1,500 19 to 87-year-olds about their thoughts on pensions, inheritance and their financial future.
When it comes to putting money away for retirement, topping up a savings account is the most popular way to save.
More than 50% of us use this as their main savings method, with 40% contributing to a cash ISA and having a work pension which they and their employer contributes to (39%) completing the top three.
A worrying 10% of people state they currently have no method in place when it comes to saving for retirement.
Richard Stone, Chief Executive of The Share Centre, commented:
“Holding out for a pot of money that isn’t necessarily guaranteed is a very risky game to play, and people need to take control of their long-term savings to be sure it will come through.
“Even if you are left a healthy inheritance it’s unlikely to fund your whole retirement, which could last 30 years or more.
“Indeed with increased life expectancy, more and more individuals will have already retired before they inherit.
“The best way to prepare for the future is to save early and save often.
“Investing little and often – into an ISA, for example – can have a huge impact on your future financial health.”
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