41% of retirees have needed more money than planned in retirement

Over 40% of retirees, especially those who have taken early retirement, have ended up needing more money than they planned, according to a new survey.

The survey of more than 2,000 people across Britain by Legal & General for Pension Awareness Week found 41% of respondents said they have ended up needing more money than planned – and one in five said they needed ‘significantly more’ than anticipated. Among those who have recently chosen to retire early (50–59- year-olds), there was a higher number of respondents (53%) who said they needed more money than expected. Significant numbers of people took early retirement during the pandemic and before the current cost of living crisis.

The research found that the typical (mean) amount in a pension pot at retirement is just over £185,000.

However, there were wide differences in people’s retirement savings. The report estimates around 16% of people retire without any funds in their pension pot, while 21% have saved between zero and £49,000. In contrast, roughly 12% of respondents have amassed over £500,000, while 5% have saved between £700,000 and £899,000.

The survey also found that over a third (31%) didn’t go anywhere for advice – the highest-ranking answer. And just over a quarter (26%) spoke to a financial adviser, despite money worries cited as the biggest cause of pre-retirement angst (41%).

Meanwhile, a report out on Friday from My Pension Expert, based on a survey of an independent survey of 2,000 UK adults, found that less than half (46%) of respondents currently have a financial plan in place for their retirement – with this figure only rising to 47% for those aged 55 and above.  When it comes to retirement savings, just 51% of UK adults know much is in their pensions, with only a slight increase (to 56%) among those aged 55 and above. The research also showed that less than a third (32%) of over-55s are confident they will retire with enough money to achieve their desired lifestyle.

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