Half of UK workers struggle when planning for retirement

Nearly half (47%) of people in work do not know how to plan for their retirement, according to new research.

The study, from Aviva, reveals fewer than one in three people (28%) feel secure in their knowledge of how to manage their pension as they get closer to retiring.

Just 27% are confident they know what a ‘good’ amount is to have in their pension for someone their age.

The number of people in work who say they know how much they need to save for retirement has dropped sharply since before the pandemic, from 61% in February 2020 to 52% now.

Aviva are calling on the government to create a Living Pension – the pension equivalent to the living wage – to help businesses ensure their workplace pension supports a minimum standard of living in retirement.

The number of people who know how much they need to save for retirement has dropped sharply since before the pandemic, from 61% in February 2020 to 52% now.

Mary Harper, managing director of Aviva Financial Advice, said: “It’s very easy to put thoughts about later life to the back of your mind, but investing time in thinking and planning ahead can make a world of difference to your options.

“Although you may have to pay for it, evidence suggests that people who access financial advice are, on average, tens of thousands of pounds better off in the long-term, but it’s not always something people feel they can relate to, benefit from or feel is designed for people like them.

“However, whether people are working longer out of choice or necessity, many are crying out for greater help from their employers to help them manage their finances ahead of retirement.”