Almost half of Brits not planning on life insurance policy

Only 42% of UK adults would admit to currently having life insurance, although this was a figure 9% higher than in 2018, according to the latest research from MoneySuperMarket.

The study, which surveyed more than 4,000 UK adults about their pension pot amounts, also revealed that 46% of respondents still do not plan on taking out a life insurance policy, despite the price comparison website suggesting this as one of the best ways to clear debt, and help dependants after the policyholder’s death.

Furthermore, the research showed that 92% of UK adults are unaware of how much they need in their pension pot to live a comfortable life in retirement, with data from Which adding that the average pension pot can require as much as £298,000.

Despite this, MoneySuperMarket’s research revealed those aged between 18 and 34 showed a lack of knowledge about pension planning – with 62% of them underestimating the average amount needed to live comfortably in retirement – and 16% thinking they would only need an amount between £50,001 and £100,000.

MoneySuperMarket consumer affairs expert, Rachel Wait, commented: “Brits face all sorts of calls on their money and it’s easy to see why the cost of everyday living can trump longer-term objectives such as saving for retirement – especially if you’re not fully aware of how much you’ll need in retirement.

“But anyone who can get into the savings habit gives themselves a better chance of building up the sort of pension kitty that’s needed to fund a comfortable lifestyle once they stop work.

“Anyone who has dependents should consider life insurance in order to ensure financial security for their loved ones. Policies can be set up to pay off a mortgage and other debt, as well as help provide money to meet the day-to-day financial needs of those left behind if the policyholder passes away.

“As a result, it’s important that people take the time to look for a policy that’s best suited for their needs.”

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