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Around 6.3 million employees (22 per cent) in the UK are not confident planning for a financially comfortable retirement, research from Aviva’s Working Lives Report 2023 has revealed.
Instead, nearly two fifths (39 per cent) of employees expect their pension to only provide enough money to “just get by” in retirement, whilst only 20 per cent expect their pension to be enough to retire comfortably.
One in ten staff, however, equating to around 2.85 million employees, have no idea whether they have enough for a comfortable retirement.
The research also showed that those closest to retirement are less confident about their post-work finances, as more than a quarter (26 per cent) of over 45-year-old employees said they were not confident about retirement planning, compared to 20 per cent 16– to 44-year-olds.
Employees closest to retirement age were also more likely than younger employees to have no idea whether they will have a financially comfortable retirement, with 14 per cent of over 45-year-olds saying they don’t know if they will be able to retire comfortably, compared to 10 per cent of 16– to 44-year-olds.
Younger employees (aged 16-24) were also the most positive of all age groups about their retirement finances, with 29 per cent stating that their pension will be enough to retire comfortably, falling to 13 per cent among those over 55.
Rising costs have also compounded anxieties, as the research found that 72 per cent of employees have become more anxious about their finances amid the cost-of-living crisis, with women more likely (78 per cent) to feel this anxiety than men (65 per cent).
Employers could help alleviate these concerns, however, as the survey found that 79 per cent of employees would like more support from their employer about planning for a financially comfortable retirement.
• If you need financial advice to make sure you get the retirement you want, Wealth of Advice can help. We offer a wide range of impartial advice, always tailored to the individual client’s needs and circumstances. For a free copy of our guide Understanding Your Retirement Options, visit https://www.wealthofadvice.co.uk/financial-guides Alternatively, contact us for a free, no-obligation consultation. Tel. 0191 384 1008 or email enquiries@wealthofadvice.co.uk
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