Less than half, 48%, of mid-retirees aged 65-75 who do not pay for financial advice are confident they are on track to make their pension savings last for life.
Almost two thirds, 65%, do not believe there is enough support for people managing their financial needs as they age.
New research by Aviva and Age UK found that only a quarter, 26%, reported feeling financially secure, with women feeling less financially secure than men, 19% compared to 32%.
Four-fifths, 83%, said an income for life from their private pension savings has become more important to them as they get older, and the same number said they would be worried if their retirement income fell. Women were more likely to feel that way than men, 87% compared to 79%.
Nearly two thirds, 64%, think a private pension should provide an income for life rather than functioning as a flexible savings account. A similar number, 65%, think there is not enough support for people managing their financial needs as they age.
The two organisations called for the introduction of a mid-retirement MOT to help. They said it could offer pensioners guidance and support while they are in retirement.
Their report recommended that ‘flex first, fix later’ retirement income solutions, combining pension drawdown strategies with a later-life annuity, should become the norm.
Doug Brown, chief executive of insurance, wealth & 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.
“They are among the first retirees getting to grips with the complex decisions that come with pension freedoms and need more support to make choices that will work for the whole of their retirement years.”
• The report was based on an online survey conducted with a nationally representative sample of 1,000 UK people aged 65-75 years old who hold a non-advised private pension, excluding people in receipt of state pension only and those with more than £20,000 defined benefit pension household income. Research was conducted from October to November 2024.
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