Financial fears for retirement

Last Modified: 09 May 2008
Source: PA News

Two-thirds of people approaching retirement are worried about being able to make ends meet, with many fearing rising living costs will push them over the edge, research shows.

Around 66% say they are worried about their financial security during retirement, according to insurer LV=.

They claim they will need an average income of £20,100 a year to see them through retirement, but in reality their pension is likely to average just £16,900.

Rising food costs and soaring utility bills are seen as the biggest threat to financial security during retirement, with 77% citing the rising cost of living as their biggest worry.

Four out of 10 people are also concerned that the recession will hit their wealth at a crucial time, while 35% are fretting about rising interest rates and 32% are concerned about the credit crunch.

Nearly a third are also worried that living longer will threaten their financial security once they give up work.

But despite their concerns, one in four admitted they were not currently saving anything towards their retirement, while 46% have failed to increase the amount they set aside.

Around 16% have even reduced their pension contributions, with just 14% of those questioned increasing them.

One reason people may not be setting aside more money towards their retirement is the increasing financial demands they are facing from their family.

Nearly half of those questioned said they had been asked for help by a family member during the past year, while 19% claimed that having children who were more financially dependent on them than previously was the biggest threat to their financial security once they stopped work.

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