Less than half (48%) of people aged 65 to 75 are confident their private pension savings will stretch for the rest of their life, research indicates.
The survey, for Aviva and Age UK, took place among 1,000 people in this age group who are on a moderate retirement income, excluding people who only receive the state pension and those with more than £20,000 in annual household income from a defined benefit (DB) salary-related pension.
Those taking part in the survey, carried out by consultancy Ignition House in October and November 2024, said they did not pay for financial advice.
More than 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 – with women more likely to feel this way than men (87% compared with 79%).
Two-thirds (65%) of those surveyed do not believe there is enough support for people managing their financial needs as they age.
Aviva and Age UK said the research highlights the “pressing need” for regular financial reviews within retirement.
They suggested that a “mid-retirement MOT” could offer pensioners guidance and support while they are in retirement andwould act as a financial and lifestyle review that could include a conversation about estate planning, fraud protection, access to state benefits, and managing finances if they start to experience cognitive decline.
Over-50s can access free guidance from the Government-backed Pension Wise service.
Doug Brown, chief executive of insurance, wealth and 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.”
Paul Farmer, Age UK’s chief executive, said: “We frequently hear from struggling pensioners, many of whom have a small private pension of their own, about how tough they have found the last few years.
“Managing your pension and other finances becomes harder as you get older – especially where people have suffered a major life-change like a bereavement or a dementia diagnosis.
He added: “The mid-70s is often a point where people need to take stock and think through their options.”
