More than a quarter (28 per cent) of people aged over 55 believe they will never be financially independent, according to King Street Wealth Management (KSWM).

Its survey highlights the insufficient retirement income that could be affecting more than one in four people aged over 55.

KSWM also found that financial optimism begins to decline when savers hit their mid-forties, suggesting that people need to start saving more and earlier to reach financial independence in retirement.

The pension gender gap was also highlighted, with 18 per cent of financially dependent women saying that they believe they will never achieve financial independence, compared to 13 per cent of dependent men.

Commenting on the findings, KSWM managing director, Mark Parello, said: “Pensions are one of the most effective ways of saving for later in life and you’re never too late to start.

“The good thing about these are that they’re tax efficient and your employer can pay in too.

“Most people factor their pension contributions into the pre-tax income, so don’t miss it as it’s paid at source with tax and national insurance.”

According to the study, the archetypical financial pessimist is a 50-year-old man from Wales and the archetypal financial optimist is a 22-year-old man from London.

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