Just 41% know how much they need in retirement
It’s extremely worrying that so many people aged 55 and over are living in such uncertainty, when they should be looking forward to a comfortable retirement.
Half of people aged 55 and over in the UK have no idea when they’ll be able to retire and only 41% know how much they’ll need in their pension pot to afford a comfortable retirement, according to Momentum UK.
Additionally, most (62%) within this age group have little idea how much money they will be able to pass on to their next of kin when they die.
The level of uncertainty around retirement was even greater when assessing respondents of all ages. According to the study, three quarters (73%) of UK adults did not know when they would be able to afford to retire, while 77% did not know how much they would need in their pension pot to provide a comfortable retirement.
An inability to review short-term finances together with longer-term finances, such as pension funds and savings accounts, appears to be contributing to the uncertainty around retirement and affordability. In the study, 60% of over-55s said they were not satisfied that they could view all of their finances in one place, with this figure growing to 69% for respondents of all ages.
Samantha Seaton, Managing Director of Momentum UK, said: “It’s extremely worrying that so many people aged 55 and over are living in such uncertainty, when they should be looking forward to a comfortable retirement. With most people now living longer and retirement becoming increasingly costly, this issue will only grow in severity."