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Retirees worried their money won’t last

Retirees worried their money won’t last

Category: Retirement
Author: Leanne Macardle
Date: 24/05/2017

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Financial concerns can be pressing at any age, but arguably even more so during retirement, when many people have left work and have little means to top up their income. Perhaps this is why money is the biggest concern for 28% of retirees, while 35% are worried their cash will run out and a quarter don't think they have enough in their pension to cover their retirement – and those who are yet to retire are even more concerned.

Indeed, SunLife's study found that, among those who are aged 50+ but not yet retired, 38% said money is their primary future concern, with 47% not confident they have enough in their pension and half worried that their money will run out, highlighting the importance of planning ahead.

After all, 85% of retired respondents thought they retired too early, and "while there could be many reasons why they feel this way, our research suggests that money is the main issue, as a third are now concerned their money won't last as long as them!" said Ian Atkinson, director of marketing at SunLife.

This may not be an unfounded concern, either; figures from the ONS show that the life expectancy of a 65-year-old is 85 for a women and 83 for a man, which means people could still have 18-20 years to fund once they've retired. Perhaps as a result of that, one in seven of those aged 66+ are still working in some way, while 6% of technically retired over-50s have gone on to start their own business, with one in five earning money from something other than their pensions, savings or investments.

"Our research shows that millions of retirees are currently earning extra cash in a range of different ways; from selling things on ebay and renting out property, to private tutoring, exam invigilating and working for the elections office," said Ian. "Others are using their skills to make crafts and cakes to sell, while others are even modelling for art classes! There are plenty of things that retirees can do if they are concerned about their finances."

This just shows the range of options many retirees have, and if you're truly concerned, another one could be to consider an annuity. Annuities provide a guaranteed income for life, so you need never worry about running out of money, and if you can supplement it with other forms of income (such as through continued investment, buy-to-let or part-time work), you can look forward to as comfortable a retirement as possible.

But what if you're not even close to that age yet? That doesn't mean you're off the hook! One of the best things you can do is start planning early, as this will hopefully mean any future money concerns won't be so intense. Sign up to your workplace pension
and contribute as much as you can, and you may also want to consider alternative savings vehicles, such as the Lifetime ISA, for all-round preparation.

What next?

Read our pensions and retirement guides to find out how you can boost your finances throughout retirement, and compare the best savings accounts to make your money go further

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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