Millions of over-55s in the UK are at risk of encountering financial difficulties in their retirement, new research by My Pension Expert has revealed.
The UK’s leading at-retirement adviser commissioned an independent survey of 2,000 UK adults, finding that less than half (46%) of respondents currently have a financial plan in place for their retirement – with this figure only rising to 47% for those aged 55 and above.
When it comes to retirement savings, just 51% of UK adults know much is in their pensions – again, there is only a slight increase (to 56%) among those aged 55 and above.
The research also showed that less than a third (32%) of over-55s are confident they will retire with enough money to achieve their desired lifestyle.
Elsewhere, My Pension Expert’s research showed that only 16% of over-55s regularly use the services of a wealth manager or independent financial adviser IFA), while just 19% have spoken with an IFA in the past 12 months to help them understand how to adapt their pension plans to the current economic climate.
Lily Megson, Policy Director at My Pension Expert, said: “This research shines a light on a hugely important issue for those approaching retirement. Without knowing the value of their pension, and without a clear financial plan for achieve their desired lifestyle in retirement, millions of Britons are at risk of an unstable financial future.
“It is crucial that those nearing retirement take the time to evaluate their finances and their financial strategies. When necessary, they should seek guidance from experts. No one has to forge their plans alone – IFAs can help an individual understand their situation and advise on how to reach their long-term financial goals.
“The government can do more to help, too. The long-awaited pension dashboard cannot come soon enough. We have to make it easier for people to track their pension pots – this is a crucial stage in empowering people to take control of their financial futures, ensuring they can make the most of their hard-earned savings and achieve their retirement dreams.”
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