Seven in ten (70%) people considering retirement in the next five years say they are concerned that their pension will fail to keep up with the rising cost of living, according to new research.
Household bills were the biggest concern (58%) cited by those approaching retirement surveyed by pension admin firm Aptia, followed by lifestyle costs (47%) and healthcare expenses (32%).
Those who were already in retirement were less concerned about their pension providing enough income throughout retirement, with just 37% sharing concerns.
However, even these retirees had noticed costs rising above the level for which they had budgeted.
Almost four-in-five retirees (78%) said household and utility bills had increased more than they had anticipated or budgeted for, followed by lifestyle costs (42%), housing-related expenses (12%), and healthcare costs at 12%.
Malcolm Reynolds, UK president of Aptia, encouraged savers to reach out to advisers to help them budget more effectively and avoid unwelcome surprises in retirement.
He said: “Our research highlights the financial uncertainty many people continue to feel as they approach and enter retirement. With rising household costs remaining a key concern, it's more important than ever that people understand how much income their pension is likely to provide and whether it will support the lifestyle they want in later life.”
Separate research from the Pensions Policy Institute (PPI) has found one in five (20%) UK workers are facing a retirement shortfall despite having relatively high earnings.
The research highlighted employer contributions as one of the key drivers of contrasting pension outcomes between higher and lower earners.
• Opinion Matters surveyed 500 UK adults between the age of 55 and 70 in June on behalf of Aptia. The research surveyed 250 who have retired and receiving a pension from a previous employer, and 250 considering retiring in the next five years and will receive a pension from a previous employer.