Pensions black hole fear for middle-aged workers
ALMOST six out of 10 Britons fear they do not have enough money to enjoy retirement, yet most are doing nothing to boost pension savings.
The pandemic has made saving enough for retirement even harder, while the self-employed are particularly vulnerable, according to research from Aviva.
The middle-aged are facing a retirement crisis, with 58 per cent of those aged between 45 and 60 worried they do not have enough pension to maintain adequate living standards when they stop working.
Yet only one in 10 plans to increase their pension contributions as a result. Others expect to work on past the state pension age, while many fear they will never be able to retire.
Less than a quarter of selfemployed workers are putting money aside to finance their retirement.
Aviva’s head of savings and retirement Alistair McQueen said: “Even small, incremental improvements to savings habits can improve long-term prospects and ease financial stress.”
Start by assessing how much income you will need to maintain your living standard in retirement. “That will help you work out how much you need to put aside each month,” he said.
Request a free state pension forecast at gov.uk/check-statepension: “This will show how much your state pension is worth, when you can access it and what you can do to increase its value.”
McQueen warned saving less will force you to retire at a later age or on less income. He suggested seeking independent financial advice, while the over-50s can use the free and independent Government-funded Pension Wise service.