Worryingly, one in eight (13%) of those polled admit that they don’t have any pension savings. When it comes to looking ahead to funding later life, over a third (36%) have never estimated their income needs for retirement, putting themselves at significant risk of being unable to maintain their existing lifestyle.
Over a quarter (26%) of those polled said that they don’t know how much they hold in pensions and worryingly this figure increases to 38% for those aged 65 and over.
Just 17% of those aged 55-64 hold more than £300,000 in pension savings – the amount that someone on average earnings would need to maintain their current lifestyle in retirement.
Steven Cameron, Pensions Director at Aegon said: “These figures should set alarm bells ringing. Despite the introduction of auto-enrolment, there are still many individuals who are entirely unprepared for retirement.
“Many people may put off finding out how much they have saved, fearing it will be less than they’d hoped or will need. But however unsettling, the earlier you carry out a reality check, the more chance you have of doing something to get back on track. It’s worrying to see that many approaching retirement age don’t know how much they have saved for retirement and only one in five are on track to maintain their lifestyle.”
• A quarter (26%) of those with pension savings don’t know how much they hold in pensions
• Over one in eight (13%) don’t have any pension savings
• 36% have never estimated their income needs for retirement
• Those nearing retirement age (age 55-64) face a fall in lifestyle with just 17% holding more than £300,000 in pensions
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