Baby boomers may be enjoying a “financial golden age”, but one in three (33 per cent) approaching retirement do not feel that they will have enough savings to retire on, according to new research from LV=.
Despite “well-reported wealth”, 28 per cent of those nearing retirement do not know how much pension savings they have, and 22 per cent have less than £50,000.
LV= retirement director, Steve Lewis commented: “It’s widely reported that over-55s are experiencing a golden age when it comes to their finances.
“Entering retirement should be an exciting time, but our research shows this doesn’t automatically mean this group is confident about their retirement plans – both from financially and emotionally.”
It seems as if many of the baby boomers' fears were justified, as LV=’s report found that 42 per cent of retirees felt that their financial situation had “significantly worsened” since retiring.
Furthermore, 35 per cent of those who have retired feel that they are often hit with unexpected costs.
Lewis added: “While, on the one hand, ‘pension freedoms’ offer people more flexibility and choice, on the other, it demands they take greater responsibility on them of their own financial affairs.”
LV= has been encouraging individuals to seek advice and start planning for their retirement earlier than they initially planned.
Lewis continued: “To help, there are a range of options available from guidance to more personal tailored advice, where a financial adviser can help people be better prepared, financially and emotionally, for their retirement.
“It can also help for people to think about where their different pension pots are and if they would be better off bringing them all together in one place.
“This can ensure they enter retirement with confidence and control over their savings, and greater choice about how to take an income that will provide everything they hope for from retirement.”
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