Pension savers aged between 45 and 54 need to rethink plans for funding their retirement, according to research by investment services organisation BlackRock.
Its Investor pulse survey, which questioned 2,000 Britons between the ages of 25 and 74, found that the 45-to-54 age group was the most financially squeezed, with nearly two-thirds (58%) feeling negative and not in control of their financial future.
Respondents aged between 45 and 54 believe an estimated pension pot of £294,000 is sufficient enough to fund their desired retirement income, yet two-thirds of this group do not know how much money they need to reach an adequate goal and 43% said they cannot afford to save for retirement.
Four in ten (40%) of this age group said that funding a comfortable retirement is currently their top financial priority.
Across all 2,000 UK respondents, the research found:
- 60% of respondents take financial planning seriously.
- 69% of respondents who use a financial adviser feel confident in their savings and investment decisions.
Tony Stenning (pictured), head of UK retail at BlackRock, said: “Our research shows that an astonishing half of [the research’s 45-to-54-year-old respondents] have lowered their aspirations for the kind of lifestyle they want in retirement, with three in ten saying they will need to work longer to fund later life.”
Alex Hoctor-Duncan, head of European retail at BlackRock, added: “This age group has high hopes for retirement, saying they would need £28,000 a year, however, two-thirds don’t understand how much money they will need to reach this goal. The reality is they will need £250,000 more towards their pot than they think.”