Concerns over retirement finances revealed

Retired sign

Nearly two-thirds of Brits are worried about a lack of money in retirement, new research has revealed.

Axa Wealth has found that 63% of adults are concerned they won't have enough cash to live comfortably in retirement, while 38% are nervous a shortage of funds means they won't be able to achieve their retirement ambitions.

More than a quarter (29%) are worried they won't have enough to cover essentials such as food and heating and 25% are worried that they will become financially dependant on others.

Worryingly, 30% admitted to not knowing how much they will need to live on when they reach retirement. Only 7% of 50-something Brits said they had no financial concerns about their retirement.
Unsurprisingly, younger people aren't preparing for their retirement. The research found that 42% of people aged 25-34 are unsure how much money they will need when they reach retirement. This drops to 25% for people aged between 55 and 64.

Significantly unprepared

Nick Elphick, managing director of specialist products, AXA Wealth, said: "Retirement should be a time to enjoy all the things you never had time to do, yet we are seeing that most people are significantly unprepared and fearful of what may happen to them.

"Those nearest to retirement need to consider ways to consolidate wealth from across a variety of assets as they approach retirement to ensure they are making the most of their savings and are maximising their tax efficiency."

"Ultimately, none of us want to be dependent on others in retirement, but to be sure of financial independence, we all need some support to help build the retirement pot we need.

"With seemingly constant changes in the pensions industry it is understandable that we are confused about our options and where to turn for advice. As an industry, we should help to broaden financial horizons and encourage as many people as possible to speak to a financial adviser, who can help tailor a plan to meet individual needs."

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And don't forget that the goalposts can and will be moved by Government. The loss of the age related allowances has dealt a hefty blow at tax paying OAP's who saved for retirement.