What’s your biggest money mistake?

‘Regrets, I've had a few. But then again, too few to mention…’

 Frank Sinatra may have done it his way and shrugged off any sense of self-reproach en route, but if we were pressed, what would be our biggest financial regret?

Research undertaken by Partnership, the retirement solutions provider, uncovered that Brits aged 40 and over most regretted not saving enough and not saving into a pension.

Getting married and subsequently divorced and delays buying a house were also mistakes cited in the survey. Check out the infographic below for an overview of the results.

Source: Partnership

The survey also broke down the results by age group and found that concerns about pension savings jumped from 23% of 40-50 year olds to 29% of 51-60 year old. Similarly, mistakes over poor investment decisions increased from 8% of 40-50 year olds to 19% of 61-70 year olds.

Andrew Megson, managing director of Partnership, said: “While everyone makes mistakes, it appears that the two most common financial regrets relate to people taking no action at all rather than making an error because they took a huge gamble. 

“The new pension freedoms mean people are going to be facing an increasing number of choices. This research suggests that, not only do people need to work hard to put aside money while they are working, they also need to carefully consider how they intend to use this money when they eventually retire.”

The ‘pension freedoms’ referred to were introduced in April. They give 55-year olds control over their accumulated pension savings, meaning they are no longer obliged to use the bulk of their funds to buy a guaranteed income in the form of an annuity.

Getting savvy with your savings and retirement options shouldn’t be put on the backburner until you regret it years, or decades later. Take a look at our top suggestions to get your money in a good enough position to fly you to the moon:

Get independent financial advice: It’s worth weighing up your options before you make any significant changes to your pension pot. For guidance, try the government’s recently launched website www.pensionwise.gov.uk, or for independent financial advice you can find a qualified adviser through the IFA trade body www.unbiased.co.uk.

Check your savings rate: Dig out your savings account paperwork and find the interest rate. If you’re dissatisfied with your returns, take a look at our savings channel to see how your rate compares to other accounts. 

Make the most of your ISA allowance:  If your savings are resting dormant you could also consider moving your money into an Individual Savings Account (ISA). You can save up to £15,240, and can choose from cash and stocks and shares accounts.

Click on the video below for more information about ISAs.   

Please note: any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.

 

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