"For many older workers supporting family members including children and parents, saving for retirement can all too easily take a back seat in terms of financial priorities."
43% of those aged 50-59 are only “occasional” or “absent” savers, while over a third (38%) aged 60-69 fall into the same categories – either saving infrequently on an ad-hoc basis with no clear savings goal, or unable to afford to save anything at all.
Aviva’s findings reveal that two thirds (64%) of workers in their fifties are yet to ramp up their pension saving in the run-up to retirement. Similarly, over half (54%) of those in their sixties – who are fast approaching or may even have passed the eligible state pension age – are yet to increase saving into their retirement fund.
Two in five (42%), just over four million older workers, have not yet calculated how much money they will need in retirement, including half (49%) of those in their fifties and a third (36%) in their sixties.
Lindsey Rix, Managing Director, Savings and Retirement at Aviva, said: “It is worrying to see so many of the UK’s older workers in the dark over how much they need to save to afford a comfortable retirement. Planning and provisioning for retirement can be a great unknown, and complicated for many, but burying your head in the sand will only worsen the situation.
“As the cost of living creeps up and wage growth continues to slow, saving for retirement in the current climate is particularly challenging. For many older workers supporting family members including children and parents, saving for retirement can all too easily take a back seat in terms of financial priorities.
“These findings show the importance of industry and government taking action to help consumers become better informed and active savers. This includes using auto-enrolment to encourage contributions from a younger age; implementing the pensions dashboard so that people can view their savings and track their progress in one place; and using concepts like a mid-life financial MOT or career review to help those in their fifties take stock and plan for later life, including health and wellbeing as well as financial priorities."
