A new survey has found that more than 8 million over 55 Brits are worried they don’t have enough money to fund their retirement.
The ‘Finances After 50’ survey by insurer SunLife also found 28% of over 50s don’t have either a company or private pension.
The research shows that women over 50 are less likely to have a private pension than men of the same age. More than a third said they did not have one while nine out of 10 overall said they were relying solely on their state pension.
Of those surveyed a third said they were worried about having enough money to live comfortably in their retirement with women being more worried than men.
Other income sources
Many said they would have to look to other income sources to fund their retirements.
Just over a quarter said they were hoping their partner’s pension would make the difference while 12% said they expected to carry on working past retirement age.
The report suggests 11%, around 2.7 million people, are expecting an inheritance to cover any shortfall.
SunLife equity release director, Simon Stanney, said: “Pensions Awareness Week is all about raising awareness of pensions and the importance of retirement planning, but we can see from our research that many of those nearing retirement have concerns that they are not ready.
“Obviously, the sooner you start saving into a pension, the better, but it is never too late. However, the older you are, the more you’ll need to put aside each month to build up that pot for retirement.
For those who are worried that they will struggle to build up enough of a pension pot to fund their retirement, looking to property wealth could be a viable option.”
SunLife’s research has shown that homeowners over 50 have seen an average increase in the value of their homes of £127,316 over the last 20 years, making release of the equity in homes an attractive proposition.
Mr Stanney commented: “Downsizing is an option for many, however, our SunLife research shows that most over 50s don’t want to move, and this is where equity release could offer a solution.
“It allows homeowners over 55 to release some of the money tied up in the value of their home without having to move.”
When it comes to savings, 21% of people aged 50 and over have less than £100 or no savings at all.
A savings account is still the most popular method of setting cash aside, but ISAs are also popular.
Just over 70% of those surveyed own their own home with an average value of £281,626.