Only 60 per cent of this age group believe they will be able to maintain their current lifestyle next year, which is below the UK average of 70 per cent among workers and retirees of all ages.
Aegon also revealed that one in eight of the 50-59-year-olds who are working have stopped or reduced their pension contributions in response to the cost-of-living crisis.
One in five have also dipped into their life savings which could “seriously compromise” future income with limited time to replace funds, Aegon warned.
However, more than half of people in this age group have made cuts to their daily spending – a higher proportion than the 46 per cent recorded for all age groups.
Aegon said that while workers in their fifties may be perceived as more financially secure than their younger counterparts and ‘looking forward’ to retirement in the not-too-distant future, they face multiple challenges as they transition to retirement.
Many may still have financially dependant children and increasingly may have frail and ageing parents to support.
Indeed, the survey of 900 workers and 100 retirees found that over one in three (37 per cent) of those aged 50-59 are ‘very or fairly stressed’ or under mental strain about their current financial situation, compared to one in four (27 per cent) aged under 50 and one in six (17 per cent) over 60 years old.
Multiple financial pressures and priorities to consider
Steven Cameron, pensions director at Aegon, said: “Our research brings into sharp focus the plight of those in their fifties.
“While the pandemic and cost-of-living crisis have impacted all age groups, people in their 50s often have multiple financial pressures and are having to juggle priorities like never before. This is leading to mental strain and a lack of confidence in future finances.”
He added: “A potentially positive development is the move by government to support and encourage over-50s to remain in or return to employment following the ‘great retirement boom’ during the pandemic.
“With the state pension age likely to keep rising, it’s important to fully recognise the changing future of work and retirement for this and future generations of over-50s.”
