Over one in three (36%) pension savers have said they are not confident they can afford retirement, Hargreaves Lansdown (HL) has found.

A survey of 1,500 people, carried out by Opinium on behalf of HL, also revealed that a further quarter (26%) of pension savers are unsure whether they can afford to retire.

Head of retirement analysis at HL, Helen Morrissey, said: "Sky high inflation and the pandemic have given our budgets a pounding in the last few years, so it’s understandable if our pension planning has gone awry. More than one-third of us say we aren’t confident that we will be able to afford to retire, with a further 26% of us feeling unsure. Bringing it all together that’s around 62% of us who are in the dark about our retirement prospects.

"There are several factors feeding into this. The squeeze on our spending today has left us with precious little to save for tomorrow. In addition, it can be difficult to know exactly how much you need to be aiming for to give you a decent income, especially at a time of high inflation."

In the survey, almost half (47%) of married people said they were more likely to feel confident about their retirement prospects, compared to almost one-third of single people (30%).

However, the findings revealed that those who are divorced, separated or widowed lag behind, with just 20% stating they were confident that they could retire.

HL also found that homeowners were more confident than renters, with 71% of additional rate taxpayers stating they were more positive in their outlook in being able to retire, compared to just 33% of basic rate taxpayers.

Morrissey added: "There are several groups who are particularly likely to lack confidence in their retirement prospects. It comes as no surprise that the more you earn the more confident you are with 71% of additional rate taxpayers feeling confident compared to just 33% of those paying basic rate tax. Homeowners are more confident than renters and married people are more confident than single people – no doubt buoyed by the ability to split their costs in retirement with their loved one.

"However, the importance of not relying on a partner’s pension at the expense of your own retirement planning is brought into sharp focus with retirement confidence collapsing among those who are divorced, separated or widowed. Pensions can form a part of any divorce settlement, but there’s a strong chance they get forgotten in the worry of sorting out more day-to-day issues such as what happens to the family home. This means many people, particularly women, can find themselves approaching retirement with little, if any retirement savings."

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