Almost four out of 10 adults aged 55 or over say retirement is “impossible” in the near future due to the cost-of-living crisis.
The survey by My Pension Expect found that many adults are delaying retirement. This has not just affected those aged 55 or over, within 10 years of their expected retirement. The pension survey found that a fifth of those aged 40 were also pushing back their expectations around retirement due to the current financial situation.
The survey found that only a third workers aged over 40 agreed that their pension savings and investments are managing to hold their value in the face of rising inflation, while 7 per cent have switched pension providers or plans in 2022 to achieve better returns. However the survey only 13 per cent had sought financial advice about their retirement plans.
My Pension Expert executive chairman Andrew Megson says: “With the cost-of-living crisis worsening, the disheartening truth is clearly that many are having to reconsider their retirement plans despite decades of saving.
“Given many are changing their pension plans, the fact so few have sought financial advice is concerning. An adviser can assess their retirement strategy based on their financial circumstances and needs. It is a question of deciding how to save or invest and the types of products that are right – from annuities to flexible-access drawdowns.
“For this reason, it is crucial the government works to improve access to independent financial advice, ensuring people understand advice is not just the wealthy. Doing so will prevent savers making rash or risky decisions involving their retirement finances in an effort to counter inflation.”