Two thirds of 2021 retirees risk running out of cash

Two thirds (66%) of adults retiring in 2021 risk running out of money in retirement, according to a new study. Research from Standard Life Aberdeen found that a 2021 retiree plans to spend, on average, £21,000 a year in retirement – almost £10,000 less than the average UK household income. However, analysis from the fund manager shows that two thirds (66%) have not saved enough to support their planned spending throughout retirement. The average value of the pension pot of the 2021 retirees surveyed by the fund manager was £366,000 but a third (33%) admitted to having less than £100,000 saved. Over a third (37%) of those planning to retire this year were worried about not having enough money to last throughout retirement. Just two in five (39%) felt very confident that they were financially ready to finish working this year, with a third (34%) of women feeling very confident versus two in five (43%) men. Almost half (48%) said they were planning to reduce their usual spending to support themselves in retirement, while a quarter (27%) said they would work part-time to make ends meet. Almost two in five (37%) of the 2021 retirees surveyed said they had accelerated their planned retirement date due to the Coronavirus pandemic. Lockdown changing their retirement plans, health worries due to the pandemic and job uncertainty were the three main reasons for speeding up their retirement. • Consumer research of 2,000 UK adults who were either due to retire in the next 12 months, or had retired in the past 12 months, was carried out by Censuswide in February.

Two thirds of 2021 retirees risk running out of cash

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