33% of non-retired adults in the UK say they will only have a state pension and no other form of retirement income once they stop working, according to new research conducted by Scottish Friendly.
Furthermore, 69% of those polled say they are worried about how secure the state pension is and whether it will actually be available to them when expected.
78% admit they may have to keep working beyond retirement age as they will not have enough savings set aside. Worse still, 28% of consumers say they are certain they will never have a big enough pension to be able to fully retire.
24% of respondents plan to sell their home and downsize to make ends meet once they reach retirement age, while 4% believe they may even have to resort to borrowing money from their children in order to get by.
Although 67% of people will also have a personal or work pension to draw upon, 44% feel they are not paying enough into it, while 78% are unsure how much they need to set aside each month in order to a secure a comfortable retirement.
50% with a personal pension have no idea how much they have paid into their plan in total, but typically pay around 7% of their monthly salary into it. Furthermore, of those with a work or personal pension, 72% admit they don’t know how much money they will have access to upon retirement.
Calum Bennie, Scottish Friendly’s savings spokesperson, said: “The research highlights how important it is for Brits to try and look beyond immediate financial pressures and consider how they’ll manage once they retire.
“Although some people may choose to work into their late 60s and early 70s, the majority of Brits will be doing so because they have no other option and still require a regular source of income.
“Considering the current economic climate and the pressure people’s disposable income is under, it is understandable that many people will have less money to set aside for retirement. However, the sooner you are able to do so the better, saving even a very small amount each month can make a significant difference to the size of your retirement pot in 30, 40 or 50 years’ time.”