Dentists are unprepared for retirement, with new research showing 78% do not understand their pension or how much to save.
More than one in four (28%) incorrectly believe they can withdraw their full pension fund, tax free, at any time, whilst the amount dentists believe they need each year once in retirement has dropped from £48,150 in 2014 to £39,602 in 2016.
‘It is very hard for a busy dentist, with all the pressures that come with the job, to free up the time to frequently review their plans for retirement,’ Vicki Wentworth, chief customer and strategy officer at Wesleyan, said.
‘As a result, there is clearly still some confusion around what pensions are there to do and how they can help you plan for the future, but proper planning is essential to help us enjoy the standard of living we dream of in retirement.’
One in eight respondents had no intention of finding out more about their retirement plans over the next 12 months.
Despite pensions appearing in the media recently, only 24% of dentists said it had made them look into their pensions over the last 12 months and 75% are unaware of how much the government contributes for every pound invested in a pension.
‘It is hard to plan for retirement if you don’t fully understand the options available to you and what you can actually do with your savings – our research shows most dentists sadly don’t understand,’ Vicki continued.
‘How much dentists need in retirement depends on their own circumstances and needs, but what is clear is that many dentists have an idea of what they would like to have after they finish work, but don’t understand enough about pensions to make effective plans to achieve it.’