Almost half (48 per cent) of retirees are worried that they may eventually run out of money in retirement, yet 41 per cent have no plan as to how much they should be spending each year to avoid this issue, research from Abrdn has revealed.
The survey showed that 24 per cent of retirees, around 3 million Brits, were expecting to boost their savings with inheritance, whilst 33 per cent, equal to around 4 million retirees, plan to downsize to cover their costs.
In addition to this, 52 per cent of retirees expect to reduce their living costs to help fund retirement, and 30 per cent are dependent on no longer having to support their family.
A further 18 per cent of retirees also said that they wish they had saved more into their private pension before retiring, and 13 per cent regretted not investing in property or stocks and shares.
Commenting on the findings, Abrdn financial planning client director Colin Dyer said that it was “vital” that people have confidence in their retirement income”, noting that retirement can last “30 years or more for many”.
He said: “You may have income from a number of different sources, so you need to think about how best to take it in retirement. This is why preparation is key and taking financial advice from an expert adviser can be helpful.
“Being aware of how much you will need throughout retirement and how this could change as the years go on is vital.
“We see a lot of our customers wanting to enjoy the earlier years in their retirement to the fullest – travelling the world, paying off their mortgage and treating themselves to their retirement wish-list.
“However, we also encourage them to keep in mind the potential longer-term costs that they could need to factor in down the line, including things like care and private medical bills.”