Research reveals lack of confidence over pension adequacy

Over a third (36 per cent) of savers aren't confident that they can afford to retire, while a further 26 per cent are unsure, research from Hargreaves Lansdown has revealed.

The survey found that married savers were more likely to feel confident about their retirement prospects, with 47 per cent of married savers expecting to be able to afford to retire, compared to 30 per cent of single people.

In addition to this, the research found that homeowners are more confident in their ability to retire than renters.

However, those who are divorced, separated or widowed were "really" lagging behind, with only 20 per cent saying they felt confident.

Income also made a key difference, as a "massive" 71 per cent of additional rate taxpayers were confident they can afford to retire compared to just 33 per cent of basic rate taxpayers.

Commenting on the findings, Hargreaves Lansdown head of retirement analysis, Helen Morrissey, explained that high inflation and the pandemic have given savers' budgets a pounding in the last few years, arguing that "it’s understandable if our pension planning has gone awry".

However, she also stressed the need for savers to take steps to feel more confident in their ability to retire, suggesting that putting a plan in place can give savers a real sense of ownership over their pension and put them on track to a more resilient retirement.

In addition to this, she warned that while married savers may be buoyed by the ability to split their costs in retirement with their loved one, there is still long-term planning needed to ensure that savers are properly prepared for retirement.

"The importance of not relying on a partner’s pension at the expense of your own retirement planning is brought into sharp focus with retirement confidence collapsing among those who are divorced, separated or widowed," she continued.

"Pensions can form a part of any divorce settlement, but there’s a strong chance they get forgotten in the worry of sorting out more day-to-day issues such as what happens to the family home. This means many people, particularly women, can find themselves approaching retirement with little, if any retirement savings."



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