The average 50-year-old believes they need another £50,000 in savings and investments including pension and property equity in order to feel financially secure, new research* from MetLife shows.
Its study of the finances of 50-year-olds shows their average net worth is around £179,000 – equivalent to around £155.3 billion in property equity, pension funds, savings and investments.
But they believe they need around £229,000 to feel financially secure – a wealth gap of £43.4 billion or £50,000 per person. The research also shows nearly three quarters (72%) of their total net worth is made up of property equity with the average 50-year-old holding £130,600 in housing wealth.
MetLife is highlighting the financial pressures faced by the Uncertain Generation – those born between 1961 and 1981 – which it calls U-Gen and has launched an online calculator at
Fitness at Fifty calculator which helps show when they can afford to retire and how they would compare against other 50-year-olds.**
Dominic Grinstead, managing director of MetLife UK, said: "The net worth including property and pensions controlled by 50-year-olds highlights what they have achieved but also how much more they feel they need to do. There is clearly a pension and wealth gap in the UK and the uncertainty is increased by ongoing financial and economic volatility but it is important that people focus on the positives of retirement planning and maximise the assets they have.
"That is why we are encouraging them to seek advice now to help them plan for and seek to achieve as much certainty as possible about their financial future."
MetLife's research shows women on average have total net worth of £167,500 and men £192,000. The averages however do not tell the whole story as 36% of 50-year-olds have total net worth of less than £25,000. Around 21% of 50-year-olds own their homes outright without a mortgage while another 44% are still paying off home loans and 32% rent their home.
The U-Gen campaign was launched by MetLife as part of its focus on delivering more certainty and control in Financial Planning and it is backing the 12-month campaign with a financial adviser guide, video case studies and a range of business development tools for advisers aimed at helping them support customers.
MetLife provides a range of solutions that seek to give those in the Uncertain Generation more control of their finances, including capital and income guarantees on retirement and investment plans.
* Research conducted by Harris Interactive among a nationally representative sample of UK adults aged 50 in October 2011
** All figures rounded to the nearest £100. Some simplifications exist in the calculation so all figures should be treated as indicative.
• In a separate development, MetLife is no longer providing quotes on its Freedom Income Plan as of 14 September, effectively suspsending new business in this area until the interest rate environment improves, says the company.
