Nearly 40 per cent of people across Britain are worried about their ability to retire comfortably, with many having no idea how much they are saving into their pension.
To add to their anxiety over retirement finances, more than 40 per cent of nearly 950 people surveyed by Aegon said they thought Brexit would end up having a negative impact on their pension pot.
Worse still, 13 per cent admit to having no pension savings, while more than a quarter of those who are saving for retirement have no idea exactly how much they are amassing.
Daunted by the size and complexity of the task, 36 per cent of people contributing to a pension have never worked out how much they actually need to retire on.
Nearly 40 per cent of people across Britain are worried about their ability to retire comfortably
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.’
On the Brexit front, Mr Cameron told This is Money: ‘Many individuals are drawing a link between Brexit and how their pension fund investments will perform going forward, with more expecting a negative than positive impact.
‘It’s important to bear in mind that pensions are particularly long term investments so people shouldn’t be overly concerned if there are short to medium-term movements in fund values.
‘Saving regularly is a good way of ironing out ups and downs in the market.’
Rich pickings: Only around 17 per cent of people end up with a pension pot of £300,000 or more to live off
Having little or no grasp of their retirement finances, many aged 55 to 64 are at risk of having to cut back on their spending once reality dawns, research from Aegon suggests.
Only around 17 per cent of people end up with a pension pot of £300,000 or more to live off in retirement, the findings add.
Back in 2012, just 55 per cent of people in the UK were putting money into a pension pot. Recent figures from the Department for Work and Pensions show this has since jumped to 84 per cent.
The annual amount saved into pensions has also increased by 5 per cent to £90.3billion in the past year.
Auto-enrolment means a lot more people working in the private sector now have a pension, but the minimum savings rate was just 2 per cent until April this year. This has since risen to 5 per cent, and will climb to 8 per cent in April 2019.
But, many are still not saving enough into their pension and remain confused when it comes to figuring out how much they will need in retirement.
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