Half (50%) of respondents who are approaching retirement in the next 10 years plan to use their workplace pension for their retirement income, according to research by Age Partnership.
Its Is the UK retirement ready? report, which surveyed 2,000 UK adults who are either retired, approaching retirement in the next 10 years or not retired, also found that 85% of respondents have not factored in the costs of elderly care to their future financial plans.
The research also found:
- 49% of respondents who are not approaching retirement yet plan to use their workplace pension for their retirement income.
- 38% of respondents who are retired underestimated how much money they need to live comfortably in retirement and a further 27% are currently struggling with money.
- 20% of respondents who are more than 10 years away from retirement do not how they will fund their retirement, although 68% of non-retired respondents expect to live off the same income or higher when they retire.
- 11% of respondents plan on downsizing their property to fund their retirement, compared to 5% who will use equity release.
- 39% of non-retired respondents are worries that the Department for Work and Pensions (DWP) may implement policy changes that affect their pension funds, compared to 54% of respondents who worry about inflation and its effect on their pension savings.
- 40% of respondents worry that the balance between the working population and the retired population is not sustainable enough to fund retirement through the state and 38% are concerned they do not know how long their retirement may need to last.
- 57% of respondents are concerned about the costs of elderly care and the lack of funding for this.
Justin Wysocki (pictured), marketing director at Age Partnership, said: “The research in this whitepaper clearly shows that there is unease in the UK when it comes to retirement finances. The uncertainty around how to prepare when younger and the best way to use our assets can be daunting.
“That’s why we launched this campaign; to highlight the importance of being educated and aware on retirement issues. Whether [individuals are] already retired, approaching retirement or even if it feels a million years away, early preparation is key to ensure [people] can live [comfortably] after work.”