A growing number of people approaching retirement are grappling with uncertainty, confusion and fear that they may run out of money in their later years or be forced to depend on their children, according to a study by Oxford Risk. The research revealed that over half of Brits aged 55 and above, approximately 10.5 million individuals, are concerned that their retirement funds will not last their lifetime.
A staggering 86% believe it’s crucial to have additional income sources as they wouldn’t be able to fund their desired retirement on state pension alone. However, the same group, who are just over a decade away from reaching state pension age, also expressed “widespread confusion” about their pension savings.
The study found that only 49% of people in this age bracket said they understood their retirement options. Just 31% stated they would still be comfortable with the risk of having their pension invested in the stock market after they’ve retired.
Unsurprisingly, those with savings felt more financially secure than those without ahead of retirement. Those with a Self-Invested Personal Pension felt the most comfortable compared to any other method of funding retirement, the study found, reports the Express.
Greg B Davies, head of behavioural finance at Oxford Risk, commented to Pension Age, saying: “People approaching retirement face a series of critical decisions that will shape their lifelong financial wellbeing, and it’s clear that many feel confused and uncertain about their options.
“The biggest concern for many is ensuring their savings will last throughout their retirement. Personalised financial planning is essential to help individuals feel confident and comfortable with their choices.”
These recent figures come in the wake of findings by behavioural finance specialists indicating that women over 55 face extra hurdles. In relation to men, women are typically expected to receive less pension yet are more prone to financial deficits in their later years, the research shows.
It also highlighted that over a third of women past 55 were uncertain about their pension amounts, while on average they possessed £80,000 less in cash savings than males, as reported by IFA magazine.