A survey by Hargreaves Lansdown found that only six in ten thought it was a “realistic prospect” that they will be able to cover their bills in retirement. Less than half (45 per cent) thought it was realistic that they would be able to cover any emergency expenses.
Those closest to retirement – the over 55s – were the most optimistic, with two-thirds of them saying they can realistically cover their bills. However, this confidence dips markedly down to just 56 per cent among the 35 to 54 age group, though they still have time to make up any gaps in their planning.
Only one fifth (22 per cent) thought they would be able to travel overseas regularly during retirement and only one quarter (25 per cent) expected to have enough cash to help out their families.
Hargreaves Lansdown commissioned Opinium to survey 2,000 people in May 2023.
Check retirement plans to avoid ‘a nasty reality check’
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “Retirement may seem like a long way away, but checking your progress against your goals periodically is vital if you are going to avoid a nasty reality check later down the line. Our data shows only 61 per cent of people thought it was a realistic prospect that they would be able to cover their bills in retirement – this struggle to even cover the basics is a far cry from the sandy beach holiday view of retirement that many people aspire to.
“The 35 to 54 age group seem the most pessimistic about their retirement prospects. Less than a quarter (23 per cent) thought it was realistic that they wouldn’t have to worry about money in retirement. This compares to 29 per cent of the over 55s and 35 per cent of the 18 to 34 age group. Similarly, only 39 per cent thought they would realistically have enough money to cover emergencies compared to 46 per cent of the over 55s and 51 per cent of the younger age group.
“This anxiety is perhaps understandable given the financial challenges this group in particular faces. They are more likely to be paying off mortgages and have children still at home. This squeeze on their budgets can make it difficult to set aside money for the future and this is something that has only been heightened by the current cost of living crisis which has pushed up the price of all our basics.”
