According to a new survey by the Money & Pensions Services, the government-funded financial guidance body, 37% of over-50s – 3m people - are too late with their planning or have no retirement plans in place.
This year will see the highest number of people in nearly two decades reaching Pension Freedom age with some 940,000 people turning 55, most needing some kind of retirement planning in place as life after work looms.
However the research, which surveyed people aged 50-70 with pension savings, reveals that many unretired people are not prepared for their post-work life.
Key findings from the research were:
- 69% have done no or little retirement planning
- Only 7% of over 50s feel “fully prepared”
- 10% have not planned their retirement finances at all
Recent retirees (those aged up to 70) are urging younger Gen X-ers (those born between 1965 and 1980) to be better prepared as 35% left planning to the last two years or did not plan at all.
Over half of retirees agreed that unretired over-50s should start planning their retirement finances earlier and 44% say they should find out more about making the most of their pension money.
Some 60% of retirees said Gen X savers should save more towards retirement and 56% said they should start planning earlier. Some 41% said they should seek guidance on organising their retirement finances.
The research also revealed that the pandemic has resulted in over a third (36%) of 50-70 year olds saying their finances have been hit.
Nearly one in five (18%) say they have decided to delay accessing their pension, while 14% are accessing it sooner - 10% to aid their own day-to-day finances and 4% to support a family member or friend.
Carolyn Jones, head of Pensions Policy and Strategy at Money and Pensions Service, said: “Given over a third of over-50s have had their finances affected by Covid-19 and we’re now facing a recession, we’re urging people not to delay or skip planning their retirement finances – whether they are thinking of retiring later or bringing it forward.”
• The research was conducted by Research Without Borders for the Money and Pensions Service. A nationally representative survey of 2,001 UK adults aged 50-70 was carried out from 28 – 31 August.