Pensioners risk £68,000 shortfall as they underestimate the cost of retirement

New research shows that 33% of British people expect to survive solely on their State pension when they retire, meaning a potential shortfall of more than £68,000 over the course of their retirement.*

18th November 2019
Investment Services

The gap between expectations and reality could see those retiring being close to £400 out of pocket each month, based on today’s pensioner spending habits. This significant miscalculation could be a major set back to enjoying later life, which could see many future pensioners having to abandon the plans they may have.

The research also revealed that just four in ten middle-aged people have a private pension in place and highlighted that 52% of people aged 40 to 60 are worried about affording retirement, with 43% believing they will be unable to afford the lifestyle they want when they finish work.

Even with retirement being on the horizon, just 9% of those surveyed between the ages of 40 and 60 have set retirement goals and 54% are completely unprepared with no idea how much is in their pension pot. This lack of planning means that 29% believe they will have to work as long as possible to be able to fund their retirement, and 57% say they plan to ‘unretire’ if they find themselves financially stretched.

If you would like to talk to us about your pension planning or any other aspect of your wealth management, please get in touch with us on 01934 875919

*Research by Censuswide: total sample size was 1,013 UK 40 to 60 year olds in employment. Research ran from 21/01/2019 to 17/02/19. 

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