Retirement funding is workers’ greatest financial worry

Having adequate funding in retirement is the most common financial worry for UK employees, according to a new survey from Close Brothers.

Its Financial Wellbeing Index report found that 31 per cent of UK workers were concerned that they would not have enough savings for a comfortable retirement.

The worry appeared to increase as people approach retirement, with 45 per cent of those surveyed aged over 55 citing it as a concern.

Close Brothers also found that just 36 per cent of employees felt prepared for their retirement, with the figure falling to only 22 per cent of those aged 55 and over.

According to the survey, women felt less prepared for retirement than men, with 48 per cent of women saying they were unprepared, compared to 25 per cent of men.

Pension engagement was also revealed to be low, with 35 per cent of workers saying that they never reviewed the amount they were saving into their pension, while 12 per cent of over 55s said that they review it less than once a year.

Close Brothers head of financial education, Jeanette Makings commented: “People are not saving enough into their pension for a comfortable retirement – the bare minimum will not suffice.

“This gap is caused by a deficiency of knowledge and interest, with a third of employees admitting to never reviewing the amount that they are saving into their pension and almost half of those approaching retirement feeling unprepared and out of their depth.

“Employers have a duty to support their staff, providing education about the real cost of retirement and guidance as to how to get financially ready, including saving early and often to reach your financial goals.”

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