People approaching retirement age are currently feeling the financial strain of the cost of living crisis the most, research by Aegon has found.

In a survey of 900 workers and 100 retirees in the UK, one in eight (13%) of 50-59 year olds who are in work have stopped or have reduced their contributions to retirement savings as a result of the cost of living crisis.

Furthermore, over one in five (21%) of people in their fifties have said that they have dipped into long-term savings as a result of high borrowing costs and inflationary pressures.

Aegon has said that although workers in their fifties may be perceived as more financially secure than their younger counterparts and are “looking forward” to retirement in the future, individuals in this group are increasingly facing multiple challenges, which may include still having financially dependent children and may have ageing parents to support.

The research also found that over one in three (37%) of those aged 50-59 are “very or fairly stressed” or under mental strain about their current financial situation, compared to one in four (27%) aged under 50 and one in six (17%) over 60 years old.

Pensions director at Aegon, Stephen Cameron, said: “Our research brings into sharp focus the plight of those in their fifties. While the pandemic and cost of living crisis have impacted all age groups, people in their fifties often have multiple financial pressures and are having to juggle priorities like never before. This is leading to mental strain and a lack of confidence in future finances.

“It is important that the plight of the 50-somethings is not forgotten. The challenges of the cost of living crisis are impacting on this group of workers in a profound way.”

Cameron added: “A potentially positive development is the move by Government to support and encourage over-50s to remain in or return to employment following the ‘great retirement boom’ during the pandemic. Employers can also reap rewards by tailoring their employment and benefits packages to meet the unique needs of this group.

“With the state pension age likely to keep rising, it’s important to fully recognise the changing future of work and retirement for this and future generations of over-50s.”

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