3.6m over-65s worry pension triple lock will be abolished

• 2.5m over 65s are concerned that rising inflation and low interest rates are eroding their savings

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:

• 31% (3.6m**) worry that the pension Triple Lock could be abolished 
• 21% (2.5m) are concerned about rising prices for day-to-day items such as food and clothing
• 20% (2.3m) are anxious their savings are being eroded by low interest rates and increasing inflation 

The over-65s and their health

• 28% (3.3m) fear contracting Covid-19. This has risen from 16% (1.9m) in June.
• 19% (2.1m) worry that they won’t be able to get the medical attention they need. This is an increase from 15% (1.7m) in June. 

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

• More than a third (35%/ 10m) of pension holders admit they know nothing about the product options at retirement nor the pros and cons of each option
• And of those planning to retire in the next five years, more than one in five (22%) know nothing about the product options available at retirement

And they don’t understand some of the big risks in retirement

• 35% (10m) of pension holders know nothing about how stock market falls can affect retirement savings
• 34% (9.9m) say they don’t know how to ensure they don’t run out of money in retirement
• Half of people with a pension over £100,000 don’t know a good amount about how to take money from their pension in a tax-efficient way
• Only 34% of married people understand how to ensure their spouse will be left with enough pension if they die

Clive Bolton, Managing Director of Savings and Retirement at LV=, said:

“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.”

Notes to Editors

* 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