Pension Freedom  

One in four facing retirement clueless about pension pot size

One in four facing retirement clueless about pension pot size

Baby boomers are better off than any other generation when it comes to retiring, however many don't feel confident they will have enough in their pension pots to finance their golden years.

According to the LV Income Roulette report, more than a quarter (28 per cent) of people expecting to retire within the next five years don't know how much they have in their pension pot.

Also one in three (33 per cent) people nearing retirement don't feel confident they will have enough funds to live on.

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Steve Lewis, retirement director at LV, said: "It is widely reported that over 55s are experiencing a golden age when it comes to their finances.

"Entering retirement should be an exciting time, but our research shows this doesn't automatically mean this group is confident about their retirement plans—both financially and emotionally."

The research also revealed two out of five (42 per cent) of those who have already retired feel their financial situation has significantly worsened since doing so.

Furthermore, more than a third (35 per cent) of retirees feel they are often hit with unexpected costs like home maintenance, car repairs or helping their children or grandchildren, meaning they frequently find themselves financially vulnerable.

Alexander Scott, former chief executive officer for the Chartered Insurance Institute, said: "Creating the conditions for people to be able to secure adequate financial resilience in retirement has become one of the key public policy issues of our time.

"As though retiring isn't disruptive enough, many consumers now face the daunting challenge of deciding not just the best way to convert their accumulated savings into a sustainable income, but also to consider their health and wealth issues over a 30 to 40 year time frame.

"All this while trying to understand that moving from full employment to full retirement is no longer a single, landmark event."

Venilia Batista Amorim is a freelance writer for FTAdviser