Two-thirds of Brits fear retirement shortfall

Having the ability to fund a comfortable retirement is something everyone wants to be able to achieve throughout their working life, but in many cases, people up and down the UK are now becoming increasingly worried about their finances in their golden years.

Research carried out by YouGov on behalf of insurer and asset management provider AXA Wealth has revealed almost two-thirds (63 per cent) of UK adults hold some sort of concern when it comes to leaving the world of work.

Nick Elphick, managing director of specialist products at AXA Wealth, stated retirement should be a time for people to feel a sense of optimism and enjoyment, but in many cases, individuals across the nation are now fearful for their financial future.

The research showed 38 per cent of Britons are nervous they will not have a sufficient cash pot built to fund their retirement ambitions, while 29 per cent say they fear they will be unable to afford household essentials like food and bills.

A lack of preparation is also a major factor in many people's worries, as almost one-third (30 per cent) of respondents said they currently do not know how much they will need to live comfortably after they retire and that this is also adding to their money worries.

"Ultimately, none of us want to be dependent on others in retirement, but to achieve this people need to be supported in putting in place realistic and achievable steps to build the retirement pot they need," Mr Elphick concluded.

"With greater flexibility around retirement options expected next year, advisers have a role to play in helping to manage peoples' finances so they have the level of income they want."

Indeed, receiving guidance from a financial adviser can help to assuage the fears of many people, as they can help them to manage their debts more effectively and also ensure provisions are put in place to help individuals feel more financially secure for the future.

Posted by James Francis