Two thirds of this year’s retirees risk running out of money in the future.
That’s according to a new study carried out for Standard Life Aberdeen.
The research, undertaken by Censuswide in February, covered 2,000 UK adults who were either due to retire sometime in the next 12 months, or had retired in the past 12 months.
The study showed that the amount of money a 2021 retiree plans to spend a year on average in retirement is £21,000 – which is almost £10,000 less than the current average UK household income. And further analysis revealed that two thirds (66%) of of those retiring people had not got enough money saved to cover their planned retirement spending.
The average value of the pension pot of the 2021 retirees surveyed by the fund manager was £366,000 – yet, worryingly, 33% of the adults admitted to having less than £100,000 saved. And over a third (37%) of those planning to retire this year indicated they were worried about not having enough money to last them throughout their retirement years.
Conversely, just two people in five (39%) felt ‘very confident’ that they were financially ready to finish working this year. Of those, there were more women than men in the ‘very confident’ bracket.
Other noticeable stats from the survey included:
- 48% said they were planning to reduce their usual spending to support themselves in retirement
- 27% said they would work part-time to make ends meet
- The three main reasons for pushing forward retirement dates were: the lockdown; health worries due to the Covid-19 pandemic; and job uncertainty.
- 37% of the 2021 retirees surveyed said they had accelerated their planned retirement date due to the Coronavirus pandemic.
If you are planning your retirement, or indeed have just started your retirement, and are in any way concerned about whether you have enough money to live the life you want, then please get in touch with our team. We are here to help.