Study reveals nearly one in two are worried about running out of money in retirement

• Investec Wealth & Investment (UK) research shows more than one in two are concerned they have not saved enough for their retirement
• More than one in four retired people say their income has more than halved while just one in five who are not retired believe that will happen to them

Fear of running out of money in retirement is rising with nearly half (48%) concerned their savings will not last them through retirement, new research from wealth manager Investec Wealth & Investment (UK) shows.

There is some good news – the over-65s are the least worried about running out of money compared with other age groups but there are still one in three (33%) concerned about how long their money will last. Around 43% who are not worried about running out of money in retirement say it is because they have a final salary pension scheme.

The study by Investec Wealth & Investment (UK), part of Rathbones Group, among people with stock market investments including pensions, paints a bleak picture – around 56% are concerned they do not have enough money for retirement. Women are more worried than men with 61% concerned compared with 53% of men.

People aged between 45 and 54 are the most worried – 70% are concerned they do not have enough put away, a figure that that drops to around 34% among the over-65s.

The Investec Wealth & Investment (UK) study shows around 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.

Those who have yet to retire are realistic about what will happen to their incomes in retirement – 67% expect their monthly incomes to drop on retirement and just 4% expect it to increase with 5% saying it will stay the same. The other 24% either did not know or preferred not to say.

The table below shows the picture around the country with Scots most likely to be concerned about not having enough money for retirement and running out of money in retirement.

Ade Babatunde, Chartered Financial Planner at Investec Wealth & Investment (UK), said: “It is worrying to see the high numbers of people with retirement savings who are worried about running out of money in retirement and not having enough money saved.

“Some of it may be explained by people worrying ahead of their actual retirement and that is a good thing if it encourages them to save more and to seek professional financial advice. However, one in three over-65s are worried about running out of money. Ideally people should save as much as possible for as long as possible and we would urge anyone concerned about retirement savings to talk to a financial adviser.”