Almost seven million people over 50 have no private pension, putting them at risk of retirement poverty, according to SunLife.

The firm’s second annual Life well Spent report has revealed that around 2.4 million (20%) of men over 50 and 4.4 million (33%) women are relying on the state pension alone to fund their retirement, which is currently just £10,600 a year.

According to Retirement Living Standards for a ‘moderate’ retirement, an individual needs £23,300 a year – more than twice the state pension. Even a ‘minimum standard of living’, would need an annual income of £12,800, more than £2,000 more than the state pension, meaning 6.9 million over 50s are at risk of poverty in retirement.

SunLife’s research found that, of those over 50s who have only the state pension to fund their retirement, nine in ten (92%) admit to being worried about money. More than eight in ten (85%) are concerned about the rising cost of living, more than half (55%) have a ‘fear’ of sudden unexpected costs, while four in ten (39%) are worried specifically about ‘running out of money’ during retirement.

Even amongst those who do have a private pension, 86% have financial fears – 69% are worried about the cost of living, and 36% about running out of money during retirement.

Mark Screeton, CEO at SunLife said: “It is really worrying that so many over 50s – particularly women – are relying on the state pension alone to fund their retirement. That level of income is just not enough to sustain even a basic standard of living, let alone a lifestyle that most people would call ‘enjoyable’.

“For some homeowners, equity release is one way they choose to boost retirement income. In fact, according to this year’s report, one in 50 over 55s have already taken out an equity release plan and, of those, 21% used the money supplement their income, with 82% saying doing so improved their happiness.

“Anyone who owns their home and is considering equity release can try SunLife’s free Equity Release Calculator, which helps estimate how much you might be able to release from your property. It’s worth noting, however, that equity release is a big decision, and any application will require you to speak to a financial advisor as part of the process.”

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