Only 34 per cent of near-retirees state savings accounts will supplement their retirement income, according to Shawbrook.
According to Shawbrook study, pre-retirees (ages 55-68) are underutilising retirement savings accounts, with only 34 per cent aiming to supplement their income with cash savings.
Meanwhile, despite recognising the value of saving in their retirement plan, only 28 per cent of pre-retirees believe savings accounts can offer guaranteed income and just 18 per cent understand that long-term fixed-rate savings can provide a consistent income stream. Current rates above 4 per cent could make these accounts crucial for retirement planning.
Furthermore, 19 per cent expect to use regular savings for income, 10 per cent to combine lump payments with monthly income, and 28 per cent to retain their assets untouched for emergencies.
Shawbrook head of savings Adam Thrower says: “Utilising long-term savings accounts now and in retirement is crucial for bolstering retirement income. Despite awareness of their importance, too few near-retirees plan to use these accounts. Savings can provide financial security, flexibility, and a buffer against uncertainties.
“Retirement planning is like a puzzle, with each piece representing essential financial strategies. Savings are a critical yet often overlooked piece. Remember this key component as you plan for your future.”