Half of over-55s unprepared for retirement

Nearly half (46 per cent) of people aged 55 and over do not feel prepared for retirement, research from Close Brothers has found.

In its Financial Wellbeing Index, Close Brothers revealed that 31 per cent of UK employees said that funding their retirement is one of their three top money concerns, rising to 45 per cent for those over 55.

For ‘mid-career’ workers the figure is 35 per cent, while only 19 per cent of younger workers counted it in their three main worries.

Just 38 per cent of younger savers and 34 per cent of mid-career workers were confident that they will achieve their long-term savings goals.

More than half (55 per cent) of UK employees said that they don’t have a financial plan to achieve their goals.

Commenting on the findings, University of Manchester professor, Sir Cary Cooper, said: “The report has produced astonishing findings, and it is absolutely necessary for employees to start planning for their retirement early.

“Reviewing how much you are saving into your pension a few times a year can go a long way. When you keep track and know how much you are putting away, you can make necessary changes where needed and feel more relaxed and confident about approaching retirement.”

Close Brothers also found that women tend to have greater concerns over a comfortable retirement, with just 54 per cent of men saying that they are not prepared compared to 74 per cent of women.

Furthermore, 41 per cent of women do not feel confident that they will be able to retire at the age they want to, compared to 23 per cent of men.

Around a third (32 per cent) of those approaching retirement believe that they will need to work in retirement to supplement their income compared to 20 per cent of millennials, while 16 per cent of all employees expect to rely on inheritance to supply their retirement fund.

Cooper added: “Going forward, we all need to think about the ageing population in the UK. We are living longer and must consider the extra money that will be required to fund a longer retirement, as well as the additional costs of social care.

“We must think ahead and engage with our retirement plans now, to worry less later and enjoy a comfortable retirement.”

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