Almost half of the next generation of pensioners are unsure if they have enough money saved, according to an NFU Mutual poll.
Only 56% of people under 55 are confident their pension pot is on track compared to 85% of those over 55.
The news comes after the Office for National Statistics (ONS) revealed that the number of UK pensioners is set to rise nearly 30% in the next 25 years from 12.3 million to 15.9 million.
“The number of pensioners in the UK is set to rocket over the next two decades – but many of the next generation of retirees are unsure about their financial future.”
The number of pensioners per 1,000 working people is expected to increase from 295 in 2018 to 360 by 2043.
Richard Needham, senior pensions expert at NFU Mutual, said: “The number of pensioners in the UK is set to rocket over the next two decades – but many of the next generation of retirees are unsure about their financial future.
“Making sensible decisions early in your career – like opting to pay the maximum you can into the pension scheme your employer offers – can have a huge financial impact later in life.
“Having started to build a pension pot it’s important that people then keep themselves ‘pension aware’.
“Staying up to date, checking their pension is on track and making adjustments and changes can make a financial difference to people once they start needing that pot to provide an income.”
What can pensioners do to prepare for retirement?
In his blog, retirement income planning director and chartered financial planner (CFP) Philip Wise says a good retirement income plan and proper tax planning are both key to fund an adequate retirement lifestyle.
Failing that: “You will almost certainly have state pensions, and these are usually enough to cover most of the minimum standard of living. Most of us have other guaranteed sources of income in retirement like final salary pensions and annuities.”
The Pensions and Lifetime Savings Association (PLSA) have gone one step further with their report aimed at trying to help people picture the lifestyle they want when they retire.
The PLSA are taking the view that by helping people picture their retirement needs, they might be more likely to go down the delayed gratification route to a more comfortable retirement. But will it work?
Moira O’Neill, head of personal finance, interactive investor, says: “So, the idea of helping people picture their retirement needs better, to help reframe how they think about their planning, is interesting. But the reality is that people don’t have a rose-tinted picture of retirement. The interactive investor Great British Retirement Survey of 10,000 people found that for nearly a quarter (23%) of people, retirement means wealth uncertainty, and not starting a pension sooner is a regret for 17% of respondents. For over a third of retirees (35%), running out of money was their biggest concern.
“By helping people picture their retirement better with three different baskets of goods aimed at different couples’ household income, the hope is that this will help focus minds. But there’s no substitute, in the run up to retirement, for keeping a record of your own spending habits – we are all different, and we all have our own different inflation numbers.”