According to the study of more than 50,000 UK adults aged 50 and over, money is a huge concern.
Some 28 per cent of all the people asked who are approaching retirement said they were most worried about their finances, while 35 per cent believed their cash would dry up before they die.
In fact, although the so-called baby boomers are believed to be the generation that had it all - defined benefit pensions, low wage-to-house-price ratios and high interest rates boosting their savings in the 1970s and 1980s - nearly half of those surveyed claimed they did not have enough in their pensions to cover their retirement.
The provider's Big 50 research also found that, when asked to think about their biggest concern for the future, 47 per cent said they don’t think they have enough money in their pensions to cover their retirement.
There is a huge gulf between how much people expect to spend in retirement and how much they actually will. Andy CowanIan Atkinson, director of marketing for SunLife, commented: "The vast majority of retired people think they retired too early (85 per cent).
"While there could be many reasons why they feel this way, our research suggests that money is the main issue as a third are now concerned their money won’t last as long as them."
Big 50: Ten Facts about people over 50
- A third of the UK population
- But growing – average age in the UK (42) is the highest it’s ever been
- By 2030, 40 per cent of us will be over 50
- Over 50s have 80 per cent of the UK’s financial wealth
- They buy two thirds of all new cars
- Worth £320bn a year to UK economy
- Spending grown 4.4 per cent a year over last decade compared to 1.2 per cent for under 50s
- Fasting growing digital segment
- Only 11% of marketing or brand money is used to target people over 50.
Earlier this year, life expectancy data from the Office for National Statistics showed longevity in the UK was on the rise. Life expectancy for a 65 year old woman is 85 and for a 65 year old man is 83, an increase of two years from 2006.
This means that after state retirement age, people will still have to fund 18 to 20 years of their life - and some of this will be in poor health.
SunLife's research compliments a study carried out earlier this year by financial planning group Tilney.
Tilney's Cost of Tomorrow report, which surveyed 2,700 UK adults, revealed people were seriously over-estimating their income and under-estimating their average household spend in retirement.
The report revealed the cost of life after 65 totals £420,500 for the average household – a figure that has been underestimated by people approaching retirement to the tune of £100,000.
This, plus the small proportion of household income that is left unspent, highlighted how many in this group were ignoring, or just not taking advantage of, the various savings and investment opportunities in the years running up to retirement.
Andy Cowan, head of financial planning at Tilney, commented: “With well over half a million pounds of disposable income on average at their fingertips, it’s understandable that many households in their 50s will choose to increase spending on the finer things in life, but it’s also a time when retirement planning should be an absolute priority.
"There is a huge gulf between how much people expect to spend in retirement and how much they actually will, and this is before costs such as long-term care have been factored in.
"This pre-retirement period is the most important when it comes to ensuring you have a solid financial plan in place to guarantee you can live the lifestyle you want while not running out of funds."
He added the challenge of funding a financial secure retirement had become ever greater because of the improvements in longevity.
Mr Cowan explained: "If we continue to see growth in average life spans, the costs of tomorrow are likely to be even greater than the data in our report suggests."
simoney.kyriakou@ft.com
