The ‘exposed generation’ of workers aged 45 and above needs significant help in managing its finances, MetLife has warned.
In a study analysing the likely financial worries and retirement outcomes for the UK’s 15.8m people aged 45 and over, the life and pension provider described them as the ‘exposed generation’.
According to Dominic Grinstead, managing director of MetLife UK, this label denotes the fact these people are coping with new pension rules as well as family and financial pressures.
He said: “There is a real risk that the rush to take advantage of pension freedoms could leave savers facing real hardship in retirement if they are not prepared for financial and life shocks. The over-45s are well aware of the risks but are not taking action to prepare.”
According to the study, for which Consumer Intelligence surveyed 1,164 adults, nearly a third feared the effect of making mistakes with retirement savings and of being unable to afford long-term care if they or their partner suffered ill health in retirement.
The research shows the exposed generation expect to have, on average, retirement savings of £125,570 by the time they stop work and hope to have an average retirement income of £21,700. But more than 2.5m people aged 45 and above are estimated to have no private pension savings.
This comes as MetLife launched its Retirement Portfolio flexible guaranteed drawdown plan. This provides daily lock-ins and enables savers to start, stop and restart their income in retirement to suit their personal needs.
Colin Parkin, managing director with Ample Financial Services, said: “I think it varies because different circumstances and different times of your life require different kinds of advice.”