Research agency Investec Wealth & Investment (UK)’s study has shown growing concerns among Britons about retirement savings.
More than half of respondents worry they haven’t saved enough for retirement, while over a quarter of retirees report a drastic reduction in income. Only one in five non-retirees believe their income won’t suffer a similar fate.
The fear of financial shortfall was reflected by almost half of those surveyed expressing concerns about their savings lasting through retirement. Even among those aged over 65, a third are worried about outliving their savings, though 43% reported feeling secure due to final salary pension schemes.
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Among people with stock market investments including pensions, 56% worry about inadequate retirement funds, with women expressing higher levels of concern.
The most anxious demographic was found in the 45 to 54 age group, with 70% fretting over insufficient savings. However, among those over 65, concerns diminish, with only 34% expressing worry about retirement finances.
Retired individuals reported significant drops in monthly income since leaving the workforce, with over three-quarters experiencing reductions and over a quarter experiencing a halving of their income.
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Prospective retirees are realistic about the financial landscape, with 67% anticipating a decrease in income upon retirement.
According to the study, three out of four (77%) retired people
say their monthly income has dropped since stopping work. For more than a quarter (26%), their income dropped by 50% or more.
Scotland emerged as the country most likely to be concerned about not having enough money for retirement and running out of money in retirement.
