Research from pensions and retirement specialist LV= highlights the worries of millions of people aged over 65.
The LV= Wealth and Wellbeing Monitor* - a quarterly survey of 4,000+ UK adults – asked over-65s about what worried them. The research found:
The over-65s and their health
Millions are confused by their retirement options
Last quarter’s Wealth and Wellbeing Monitor shows that millions of people are confused about their retirement options.
Most people know little about available retirement products
And they don’t understand some of the big risks in retirement
“The State Pension remains a foundation stone for many over-65s’ retirement plans, who are now worried that the suspension of the Triple Lock could become permanent.
“Rising prices and poor returns on deposit accounts will dismay pensioners whose only or main source of retirement income is the State Pension. Many will be financially squeezed as the cost of essential items like home heating rise while returns from savings accounts – which typically form the bulk of retired people’s savings - remain low.
“Rising inflation and poor returns from cash present a dilemma for people in retirement. They might have to drawdown their savings more quickly than they would want or switch some of their savings into higher-risk assets. These can offer the prospect of keeping pace with inflation but can be hit hard if investment markets fall.
“As always with retirement planning, the sensible thing to do is to try and plan ahead to make sure wherever possible that other sources of retirement income can be accessed if and when needed. Consulting a financial adviser about your retirement plans is a good way to understand your retirement options, and how you might ensure your retirement income keeps pace with inflation.”
* The LV= Wealth and Wellbeing Monitor is a quarterly survey of 4,000+ consumers which examines their attitudes to spending, saving and retirement. The Monitor also surveys the attitudes of mass affluent consumers, those with assets of between £100,000 and £500,000 excluding property, which are a key target market for financial advisers. LV= surveyed 4,000+ nationally representative UK adults via an online omnibus conducted by Opinium in June and September 2021.
** UK population stats from ONS. Total UK adult population is 52.7m UK adults (aged 18+). Total UK population aged 65+ is 11.5m