Over seven in 10 (71%) financial advisers said that their clients’ biggest concern is outliving their pension savings, NextWealth has found.

The firm’s managing lifetime wealth report, which surveyed 200 financial advisers, revealed that inflation and the cost of living was a concern for 64% of their clients, with just under half (49%) of advisers citing covering long-term care costs as another client concern.

NextWealth said that these concerns are further underscored by the recent Pension and Lifetime Savings Association’s (PLSA) retirement living standards, which reported a substantial increase in the amount needed for a moderate retirement over the past year.

Pensions director at Aegon, Steven Cameron, said: "While the prospect of living longer brings many benefits, this research shows there are many challenges that come with navigating and making the most of your retirement years.

"Seventy-one per cent of advisers say that clients are concerned about running out of money before they die, which raises real issues about the adequacy of current savings behaviours, as well as highlighting the value of advice at and through retirement, including if drawing a flexible income.

"It’s not surprising that worries over the cost of long-term care features as a top three concern for retirement clients. These findings highlight how important it is for Government to provide more certainty over social care funding, so advisers can help their clients to plan ahead."

Although concerns about long-term financial security linger, advisers reported that clients’ desires for retirement remain grounded.

Over three quarters (76%) of advisers reported that clients hope to maintain the same standard of living in retirement as before retirement.

Two thirds (65%) of advisers found that clients expressed a desire to assist their children and grandchildren with financial commitments, while 45% of advisers found that clients wished to travel or live overseas.

Cameron added: "While concerns linger, the report also paints a picture of aspirations for retirement.

"These findings reinforce the research we’ve conducted on how living longer has impacted the retirement landscape. Those approaching or in their ‘Second 50’ are bearing more of their own financial risks. This means that personalised financial planning based on an understanding of clients’ hopes and fears is crucial for tailoring strategies that meet individual needs and provide peace of mind."

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