Four in 10 (41%) people aged 50 and over have said they have needed more money than expected in retirement, a recent survey by Legal & General (L&G) has found.

The firm’s survey of over 2,000 over-50s across Britain revealed that 94% said their most important retirement dream is to feel financially secure for the rest of their life.

The research also found that the typical pension pot at the time of retirement was just over £185,000.

However, L&G said that there were wide differences in people’s retirement savings, with 16% of people retiring without any funds in their pension pot and 21% having saved between zero and £49,000.

In contrast, L&G found that around 12% of respondents had amassed over £500,000, whilst 5% had saved between £700,000 and £899,000.

In terms of decisions people make about what to do with their retirement savings, almost a third (31%) didn’t go anywhere for advice, which is the highest ranking answer, with just over a quarter (26%) speaking to a financial adviser.

Many of those surveyed said retirement was everything they had hoped for, with almost half (47%) saying they had travelled and 22% stating they had embarked on new hobbies.

However, L&G said that the financial reality doesn’t always match people’s needs. Four in 10 (41%) said they ended needing more money than planned, with one in five (20%) saying they needed “significantly more” than anticipated.

The research found that of those who had chosen to retire early (50-59), over half (53%) said that they needed more money than expected.

Managing director at L&G retail retirement, Lorna Shah, said: “There’s a lot you can do to help you live your ideal retirement when you finally get there. Start by imagining it. Sketch out your later life hopes and dreams. Then you can see if you’re saving enough and making the right pension pot choices to support them, and take action if you’re not.

“Of course, in our tough financial times that probably won’t be as easy as it sounds. But even if all that planning’s a bit stressful and confusing, our research shows that it will be well worth doing. Looking at your financial situation, setting later life goals and getting advice on the best way of achieving them are key steps toward a happy retirement.”

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