Britons are becoming increasingly reliant on the state pension to fund their retirement as savings concerns grow, according to new research.
Less than half of people aged 65 to 75 in the UK are confident their private pension savings will last for the rest of their post-work lives.
This study, conducted by Aviva and Age UK, reveals growing concerns among future retirees about their financial security in later life.
The survey included 1,000 people aged 65 to 75 with moderate retirement incomes, excluding those solely on state pensions or with annual household incomes exceeding £20,000 from defined benefit pensions.
The state pension is administered by the DWP
GETTY
Conducted by consultancy Ignition House in October and November 2024, the research specifically targeted individuals who do not pay for financial advice.
The survey revealed that 83 per cent of respondents said an income for life from their private pension savings has become more important as they age.
The same proportion would be worried if their retirement income fell, with women more likely to feel this way than men (87 per cent compared with 79 per cent).
Two-thirds (65 per cent) of those surveyed believe there is not enough support for people managing their financial needs as they age.
Do you have a money story you’d like to share? Get in touch by emailing [email protected].
Aviva and Age UK said the research highlights the “pressing need” for regular financial reviews within retirement. They proposed a “mid-retirement MOT” to offer pensioners guidance while in retirement.
This financial and lifestyle review could include conversations about estate planning, fraud protection, access to state benefits, and managing finances if cognitive decline begins.
Over-50s can currently 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.”
Farmer emphasised that the mid-70s often represents a critical juncture for pensioners.
“The mid-70s is often a point where people need to take stock and think through their options,” he noted.
LATES DEVELOPMENTS:
Britons are unaware of how far the state pension will go in retirement
GETTY
Despite the state pension, research suggests a widespread lack of awareness around the retirement benefit.
Adults unsure of how much they will receive and when they will start receiving it, according to new researchfrom Standard Life’s Retirement Voicereport.
As the full new state pension rises to almost £12,000 a year, half of British adults are unaware of how much they will receive from their state pension, including 31 per cent of those nearing retirement, aged 55-64.
Furthermore, nearly a third of UK adults (32 per cent) and 12 per cent of 55 to 64-year-olds do not know the age at which they’ll qualify for the state pension age.
