Almost a quarter (24 per cent) of Brits planning to retire within the next two years have taken no steps to prepare for retirement over the past 12 months, research from Scottish Widows has revealed.

The study found that even among those targeting retirement in 2026, levels of preparation remained relatively low.

Just 21 per cent said they had put together a retirement plan, while 19 per cent had spoken to a financial adviser or discussed their plans with loved ones.

Fewer than one in six (15 per cent) had reduced or changed their working hours, and only 13 per cent had consolidated their pension pots.

Meanwhile, 12 per cent had purchased an annuity and 8 per cent had downsized their home.

Affordability concerns remained a key barrier to retirement, with 12 per cent of baby boomers saying they cannot afford to retire next year.

A further 9 per cent said they wanted to keep working, while 4 per cent cited concerns about losing their sense of purpose.

Scottish Widows pension expert, Robert Cochran, stressed that early engagement is “critical” for those approaching retirement.

“For those planning to retire - whether that’s a goal for 2026 or the next couple of years - asking those all-important questions about your financial future now is critical,” he said.

“The sooner you understand the full picture of your retirement finances, the better placed you are to make decisions about what your future looks like.”

Cochran urged savers to review their state pension entitlement alongside any workplace and private pension savings before considering how they want to generate income in retirement.

“Once you know how much you have, you can start thinking about your income options,” he added.

“An annuity, which provides a guaranteed level of income through life like a salary, might be for you, or you might prefer the flexibility of keeping your money invested and drawing from it as you need.

“But the key thing here is that it is never too early to start thinking about what you want your retirement to look and feel like."

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