A third of Britain’s soon-to-be retirees wish that they had saved more for their retirement, while one in eight do not have any pension savings at all.
According to a new study by financial services provider Prudential, half of those who are in their final ten years of work have admitted that they are jealous of those who have already retired, as they do not believe that they will be able to match their quality of life post-employment.
More than half (54 per cent) said that they believe they will be worse off than current retirees when they finally give up work.
Prudential surveyed a cross-section of people who are due to retire between 2018 and 2027 and found that only one quarter (27 per cent) had been saving into a pension fund since they started work, although 34 per cent wished that they had saved more.
One in eight (16 per cent) of those surveyed admitted that they were not saving into a pension at all, while 13 per cent said that they had been unrealistic about the age at which they will could afford to retire.
Despite these sentiments, Prudential’s research has found that average expected retirement incomes have been growing steadily since 2013.
Despite rising inflation and low rates, the insurer predicted that people giving up work this year can expect to live on an average annual salary of £18,100, just £600 less than the peak in 2008.
Compare Our Top 10 UK Income Bonds
“We’ve seen the retirement incomes of new retirees creeping upwards in the last few years, so it’s not all bad news for those planning to give up work in the coming years. However, we are also seeing it become far less common for people to retire with generous ‘final-salary’ pensions, so a degree of retirement envy among those still at work is understandable,” said Stan Russell, a retirement expert at Prudential.
“But it is important to remember that for most people it isn’t too late to take action and make a real difference to their quality of life when the time comes to stop work.”
“Even later in their working life, most people should benefit from saving as much as possible into their pensions and also ensuring the National Insurance contributions they have made are sufficient to guarantee them the state pension.”
“Pension saving and retirement planning has changed massively over the past ten years, and retirement is now more of a process than a one-off event. A consultation with a professional financial adviser should help many people make the right decisions about saving while they work and taking an income as they start to wind down.”
When asked what advice they would give to Britons just starting work, almost two thirds (63 per cent) of those in their last decade of work said that they should save as much money as they can for as long as they can.