Almost 4 in 10 (38 per cent) retirees are worried about unexpected expenses during retirement, analysis from Legal & General (L&G) has found.

The study, conducted in partnership with University of Sheffield professor of finance, Alberto Montagnoli, revealed that 36 per cent of retirees were anxious about having a lower standard of living in retirement.

However, 31 per cent of retirees said declining health was a concern for them, which the group highlighted as evidence that financial instability, which worried 30 per cent of participants, was a more pressing issue for retirees today.

One third (33 per cent) of retirees were worried about being unable to meet living costs, indicating the value of financial planning and education for a satisfactory retirement.

Given this, L&G pointed out that its ‘Deciding How to Use Your Pension’ tool was designed to address these worries, and help retirees make well-informed decisions about their pensions.

Commenting on the research, Montagnoli said: “There is a clear need for people to understand and prepare for their retirements better.

“It’s important for the financial services industry to help people understand pensions and encourage planning for retirement at all ages.

“Financial education and appropriate retirement planning aren’t just nice-to-haves – they’re necessities.

“We need to empower people to make informed decisions that will ensure they have a financially secure retirement.”

L&G Retail Retirement managing director and Home Finance CEO, Lorna Shah, added: “At L&G, we believe retirement should be as stress-free as possible.

"We want to redefine retirement as a rewarding chapter of financial security and a fulfilling lifestyle.”

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