A recent survey of over 55s has revealed that of more than 10,000 people asked, 43% are concerned that they won’t have enough money to cover them for their retirement.

The average pension pot is £105,496, but it’s feared by many that this still may not be enough.

Two-thirds confirmed that the increased cost of living has meant their money doesn’t go as far as they once hoped. Nearly half blame historically low interest rates, which have meant investments and savings haven’t increased in value in the way they expected.

Dean Lamble, Chief Executive at SunLife who conducted the research said:

“In some ways, there has never been a better time to retire – we’re living longer, enjoying healthier, more active lifestyles, and thanks to the new flexible rules around pensions, we have more freedom to spend our pension savings as we choose.”

However, it’s clear from the research that this isn’t the case for everyone. As priorities change, or pension pots are reduced due to changing economic circumstances, it’s easy to see how many could be left in a concerning position.  The average UK household currently spends approximately £2,200 per month, according to various sources. This means a total of £26,400 required each year to cover the same lifestyle in retirement, with more for those who desire to maintain a higher level of spending.

As always, ensuring your retirement plans reflect the spending levels you want to maintain and including an allowance for any changing circumstances is critical.

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