Less than half of those in early retirement are confident their private pension savings will last as long as they need, new research has revealed.
A survey conducted by Aviva and Age UK found that only 48 per cent of people aged 65 to 75 feel secure about their private pension’s longevity.
The importance of a guaranteed lifetime income from private pensions grows with age, as highlighted by the survey. Over 80 per cent of respondents emphasised this increasing importance, with a similar proportion expressing concern about potential drops in their retirement income.
This anxiety was more pronounced among women, with 87 per cent expressing worry compared to 79 per cent of men.
A significant gap in support for managing finances in later life was also revealed. Two-thirds of those surveyed believe there is insufficient help available for people navigating their financial needs as they age.
The research focused on those with moderate retirement incomes, excluding those solely reliant on the state pension and those receiving over £20,000 annually from defined benefit pensions.
The survey, carried out by consultancy Ignition House between October and November 2024, also specifically looked at individuals who do not utilise paid financial advice.
Aviva and Age UK said the research highlights the “pressing need” for regular financial reviews within retirement.
They suggested that a “mid-retirement MOT” could offer pensioners guidance and support while they are in retirement and would act as a financial and lifestyle review that could include a conversation about estate planning, fraud protection, access to state benefits, and managing finances if they start to experience cognitive decline.
Over-50s can access free guidance from the Government-backed Pension Wise service.
Doug Brown, chief executive of insurance, wealth and retirement at Aviva, said: “Pensioners today clearly value financial security, but many seem to be sleepwalking into later retirement with a set and forget approach to their retirement income.”
Paul Farmer, Age UK’s chief executive, said: “We frequently hear from struggling pensioners, many of whom have a small private pension of their own, about how tough they have found the last few years.
“Managing your pension and other finances becomes harder as you get older – especially where people have suffered a major life-change like a bereavement or a dementia diagnosis.
He added: “The mid-70s is often a point where people need to take stock and think through their options.”
