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Over a quarter of lawyers plan to work past retirement age

Seventy-nine per cent of legal professionals unaware of how much income they will have in retirement

1 December 2014

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Seventy-nine per cent of legal professionals unaware of how much income they will have in retirement

Nearly three quarters of lawyers are worried they will not be able to fund their retirement, according to new research from financial services provider Wesleyan.

The research, based on the responses of 101 legal professionals, showed that on average lawyers thought they would need £35,680 a year to live comfortably in retirement , but 70 per cent of them feared they would not reach that target.

Further evidence showed that 79 per cent were unaware of how much income their current pension arrangements would generate.

Just under a fifth of lawyers said they were planning to retire early, down from 29 per cent in 2011, while more than a quarter felt they would have to work past their retirement age.

Only 30 per cent of respondents admitted to relying solely on a pension for retirement income, with one in six planning to use the equity in their property for additional financial support.

The research also found that 44 per cent of lawyers reviewed their retirement planning less than once a year. Of those, more than half either couldn't remember the last time they reviewed their plans or hadn't done so since joining their pension scheme.

Samantha Porter, Wesleyan's group sales and marketing director, said: "The key to a successful retirement is planning ahead. Lawyers should think about the kind of lifestyle they want in retirement and how much income they will need to finance that. Once they have a plan in place they should review it at least annually."

She continued: "There has been a raft of changes in the pensions environment in recent years and these could all impact final retirement income. People often overestimate how much cash they will need in retirement but they really should understand how much income their pension plans will generate."

This article first appeared on PCA's sister publication, Solicitors Journal

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Tax & Wealth structuring