One in four workers aged over 40 fears outliving their savings more than dying, new research from Leeds Building Society shows.
Over a quarter (27%) of the study’s respondents say they worry most about outliving their savings, compared to just under a quarter (24%) who are most worried about dying.
Meanwhile, over half (54%) of respondents think they will have to work beyond retirement age in order to have enough savings to live the lifestyle they want. The things that people save for include travelling the world (18%), home improvements (28%) and starting a business (4%). Two in five (42%) are saving for a comfortable retirement.
Of the respondents who are full-time workers, over four in 10 (42%) say their biggest regret is not saving enough money when they were younger. A quarter (25%) of 50 to 60 year olds said they regret not saving enough money to retire early.
Personal finance expert, Andrew Hagger, comments: “It is refreshing that people acknowledge there is a potential shortfall in their pension pot and are taking action, with two in five aged over 40 saving to meet their retirement goals.”
According to the study, workers worry more than twice as many hours per week about their future than retirees. Richard Fearon, chief commercial officer at Leeds Building Society adds: “It’s completely understandable that many respondents have concerns about the future but it’s really positive to see that once people do retire, they worry a lot less.”
Banks and building societies more trusted than pension providers
When it comes to holding your pension fund, just under two thirds (62%) of respondents say they trusted a bank or building society to look after their pension fund more than a pension provider. When asked for the reasons why, over half (55%) said they feel these institutions allow customers more control of their money, while just under half (49%) said they believe they would have easier access to it.
Mr Hagger adds: “It’s no shock that more than three in five of those interviewed said they trusted a bank or building society over a pension provider when it comes to looking after their pension nest egg. Having control over their money and easy to-understand products are valued characteristics among older savers – they want something they can understand and trust.
“Whilst there are tax benefits available for contributing to and withdrawing from pension products, there’s also a strong case for cash savings to complement building a nest egg for those post-retirement years.”