Over two-thirds of retirees wish they had saved more for retirement as pension pots continue to shrink in the UK.
Figures from Aviva show that saving pots for those aged over 55 have fallen by a massive 27% in the last 12 months.
Many have yet to even start planning for their pension as 37% of economically active over 55 year olds have not made plans for retirement.
The ëReal Retirement Reportí found that the typical over 55 year old only starts to think about their retirement income at 48, but it takes four years before they start to think seriously about their finances.
Clive Bolton, Retirement Director at Aviva, said; ìEveryone has seen their financial situation impacted over the last couple of years, but those approaching retirement are the most vulnerable as they should be looking to secure their financial future. It is of concern to find so many people are finding a lack of money is the main factor inhibiting them from planning their retirement finances.
“As such it is noteworthy that even though the end to the Default Retirement Age has only just come into law, many of the UK’s over-55s are already thinking that they will be working for longer than they would have anticipated a few years ago,î continued Mr. Bolton.
The average savings pot has fallen by 27% in the last year as inflation has risen to 5.4% for the over 55s. This means that the average pension pot of £15,262 is now just a measly £11,153!
To make matters worse, the average income for over 55s has fallen by 4%. Now people are retiring with smaller savings pots and bigger debts, saving less and less each month. 67% of 65-74 year olds regret not saving more for their retirement, according to Aviva.
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