More than a third (34 per cent) of UK savers say being able to afford day-to-day living costs in retirement is a “key concern”, research from Smart has revealed.

Smart’s annual Future of Global Retirement report found that affordability in retirement was the biggest concern for UK savers in 2022, overtaking the concern that savers might have to live a limited lifestyle in retirement, which was the largest worry in the 2021 report.

This concern of affordability was revealed by the research to have a gender disparity as 38 per cent of women in the UK reported concerns about having enough money for day-to-day living expenses in retirement, compared to 31 per cent of men.

Smart also reported that women were less confident about knowing their retirement options and were more likely than men to view retirement as a transition than a one-off event (51 per cent of women vs 43 per cent of men).

Age differences were also found, as Smart’s report found that one in five UK respondents aged 18-25 were concerned about being able to afford accommodation in retirement, compared to just one in ten of their over 65-year-old counterparts.

It was also revealed that more than half (57 per cent) of UK respondents plan to supplement their pension with other forms of income and 18 per cent expect to do so through continued employment.

Affordability was not the only concern that was uncovered through Smart’s research, however, as 29 per cent of UK respondents stated that they “don’t understand” the pension options available to them in retirement.

This concern was also present amongst savers closer to retirement as 19 per cent of those aged over 55 said that they did not understand their options.

Smart director of strategic delivery, Eve Read, commented: “In the decade since the introduction of auto enrolment in the UK, we’ve seen millions of people saving for retirement for the first time.

“However, despite the initiative’s success, millions still feel they aren’t saving enough into their pensions. In some cases, this is due to working part-time, being in lower-paid jobs or simply opting out of the auto enrolment scheme offered by their employer.

“Young people and women are particularly concerned about meeting day-to-day living costs in their retirement. We will continue to push for and implement changes that will tackle these savings gaps and inequalities effectively.

“It’s critical that we continue to develop solutions aimed at changing the retirement landscape for the better, particularly for those who face the greatest challenges.”

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