A recent study warns that millions of people born before 1970 may face financial insecurity during retirement. With concerns over state pensions and private savings falling short, experts highlight the importance of planning and additional income sources.<\/p>\n\n\n\n
An Oxford Risk study reveals that more than half of Britons aged 55 and over fear their retirement funds will not last a lifetime. The findings point to widespread confusion around savings and significant financial disparities between men and women, underlining the urgency for tailored advice and informed strategies.<\/p>\n\n\n\n
The state pension, a cornerstone of retirement income in the UK, is increasingly viewed as insufficient to meet the needs of retirees<\/a>. The Oxford Risk research shows that over 10.5 million people<\/strong> aged 55 and older\u2014more than half of this age group\u2014worry about running out of money during retirement. Additionally, 86%<\/strong> of respondents believe they will need supplementary income sources to sustain their desired lifestyle.<\/p>\n\n\n\n
Experts emphasise that the rising cost of living<\/strong>, coupled with gaps in private savings, exacerbates financial pressure. Those nearing state pension<\/a> age are especially vulnerable, with many lacking clarity about their savings or the full scope of their financial needs. Dr Greg B Davies<\/strong>, Head of Behavioural Finance at Oxford Risk, explained, \u201cOur research highlights significant disparities <\/strong>between women\u2019s and men\u2019s financial security in retirement. Despite planning to spend less, many women face substantial financial gaps, with lower savings and less certainty about their retirement income.\u201d<\/p>\n\n\n\n
Notable distinctions between the ways that men and women approach retirement funding are also highlighted by the study. With 41%<\/strong> of women wanting to work part-time compared to 30%<\/strong> of men, women are more likely than men to consider part-time employment or property income as alternate sources of funding, with 21%<\/strong> of women planning to rely on property income compared to 18% of men. <\/p>\n\n\n\n
On the other hand, men are more likely than women to rely on investment portfolios and self-invested personal pensions<\/strong> (SIPP<\/a>s), with their respective percentages being 23%<\/strong> and 25%<\/strong>, compared to 10%<\/strong> and 16%<\/strong> for women. Additionally, 53%<\/strong> of men and 50%<\/strong> of women plan to use cash surpluses as a primary retirement funding source, further highlighting differing strategies between the genders.<\/p>\n\n\n\n