Seven in 10 people planning to retire within the next five years are concerned that their pension income will not be enough to keep up with rising living costs, research from Aptia has found.

The analysis showed that household bills were the biggest financial concern among those approaching retirement, cited by 58 per cent of respondents.

Lifestyle costs, including travel and hobbies, were identified as a concern by 47 per cent, while 32 per cent were worried about healthcare expenses.

The survey included 250 retirees receiving a pension from a former employer and 250 people planning to retire within the next five years who expect to receive a pension from a previous employer.

Among retirees, concerns about having sufficient pension income throughout retirement were lower, with 37 per cent expressing concerns.

However, 78 per cent said household and utility bills had risen by more than they had anticipated or budgeted for.

Lifestyle costs were the second most mentioned area where costs had risen more than expected, highlighted by 42 per cent of retirees, while 12 per cent pointed to housing-related costs, including mortgage, rent and maintenance, and a further 12 per cent cited healthcare expenses.

Aptia UK president, Malcolm Reynolds, said the research “highlights the financial uncertainty many people continue to feel as they approach and enter retirement”.

“With rising household costs remaining a key concern, it's more important than ever that people understand how much income their pension is likely to provide and whether it will support the lifestyle they want in later life," he added.

Reynolds said that reviewing pension savings, understanding likely retirement income and assessing how it aligns with future spending needs can help savers plan more effectively and avoid unwelcome surprises in retirement.

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