People need more money than they think
Concerning research has highlighted that almost half of retirees end up needing more money than planned.
New analysis published by Legal & General on Friday found that 41% of the 2,000 people quizzed said they required more funds when they retired than they had planned.
More worryingly, 1 in 5 said they needed ‘significantly more’ than anticipated.
This figure was higher among those who have recently chosen to retire early from the age of 50 to 59-years-old, where 53% said they needed more money than expected.
The research found that the typical amount in a pension pot at retirement is just over £185,000.
However, there were wide differences in people’s retirement savings.
Around 16% of people retire without any savings for later life, while 21% save up to £49,000. In contrast, roughly 12% of respondents amass over £500,000, while 5% save between £700,000 to £899,000.
Interestingly, the data showed that 31% did not go anywhere for advice to manage their final pot – which was the highest-ranking answer – and only 26% spoke to a financial adviser.
Before retiring, 40% of respondents revealed they were most concerned about running out of money.
Yet despite their concerns, 40% admitted they had failed to do enough planning for their retirement.
Interestingly, just under 10% of retirees have continued working part-time.
factbox
Key data facts:
· 41% of respondents needed more funds than planned in their retirement, and 47% of UK retirees say their retirement income has not been used as they intended.
· The average pension pot balance at retirement is just over £185,000. However, disparities are prominent with 16% retiring without any pension savings and 12% accumulating over £500,000.
· 31% of respondents did not seek any financial advice when planning for retirement.
· Before retiring, 40% of respondents revealed they were most concerned about running out of money. Despite their concerns, 40% admitted they had failed to do enough planning for their retirement.
· Just under 10% of retirees have continued working part-time.
