New research from Hargreaves Lansdown reveals a grim outlook for many when it comes to retirement finances.
According to a study conducted by Opinium on behalf of Hargreaves Lansdown, only 61% of respondents believe they will be able to cover their bills in retirement.
The survey, carried out in May 2023, involved a sample of 2,000 people and highlighted growing concerns about financial security in later life.
The study shows that less than a third (29%) are optimistic enough to think they won’t have to worry about money after retiring, and just 45% feel confident in being able to handle any emergency expenses.
The aspiration for regular overseas travel and financially helping out families appears even less attainable, with only 22% and 25% respectively believing these to be realistic prospects.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “Our data shows that the struggle to even cover the basics is a far cry from the sandy beach holiday view of retirement that many people aspire to.”
The survey findings are particularly bleak among the 35-54 age group. Only 56% of them are confident they can cover their bills in retirement, compared to two-thirds of those over 55. Morrissey notes that this cohort seems the most pessimistic about their retirement prospects, given they are likely to be balancing mortgages and children at home, amid a cost-of-living crisis that has escalated the price of basic goods.
However, Morrissey suggests there’s still time for younger generations to make a difference to their financial future. “Things are undoubtedly tough right now but as things get better it can really boost your pension pot if you are able to increase contributions as and when you receive pay rises or move jobs,” she recommends.
