Over half of near-retiring Brits fear penniless pots

But fifth of 45-60-year-olds are not taking action to strengthen their income

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Retirement pots are never the first thing on people’s minds but some Brits are worried they may not have one.

Financial services giant Aviva surveyed over 1,000 UK adults and found 58% of non-retired people aged 45-60 are worried they will not have enough money to provide an adequate standard of living in their later years.

But over a fifth (21%) of non-retired people in this age group are not taking action to strengthen their retirement income.

Taking action

Those aged 35-44 (25%) are least likely to be taking action to improve their retirement finances, this compares with 14% of consumers aged 18-24, the lowest percentage of any age category.

Those non-retired and aged 35-44 are most concerned about their level of retirement finances (66%), followed by those non-retired and aged 45-54 (59%).

Only 11% people aged 45-60 are planning to increase their pension contributions in the future, although 17% in this cohort have said they think will need to work for at least six months or more past their retirement date, or they cannot see a situation where they can think about a retirement date.

Support

Alistair McQueen, head of savings and retirement at Aviva, said: “The high levels of uncertainty caused by the coronavirus pandemic are likely to prompt many people to urgently assess their financial outlook on the journey through mid-life to retirement.

“Although uncertainty can be unsettling, people can seek reassurance by taking steps to better understand their current position and identify practical ways to tackle the challenge ahead.

“Even small, incremental improvements to savings habits can improve long-term prospects and ease financial stress where possible.

“Some groups have been particularly hard hit by the pandemic, and even before coronavirus, self-employed workers often struggled to save for retirement due to the often-uncertain nature of their employment. It is vital we do all we can to support them, including addressing the need for tailored financial guidance.”

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