Britain faces a looming pensions crisis as millions of working-age people have admitted they lack any retirement savings strategy, according to damning new research.
Fresh findings from Aegon's Second 50 initiative indicate that 30 per cent of Britons do not know how they will manage their finances their post-work years.
Individuals without retirement funding arrangements face significantly elevated levels of financial anxiety, based on the pension provider's study.
The absence of structured preparation for retirement years appears to generate considerable unease about future financial security.
New research from Aegon is shining light on the lack of pension saving planning in Britain
| GETTYBased on Aegon's data, 46 per cent of those lacking retirement strategies report feeling stressed about their financial future, while merely 11 per cent of individuals with comprehensive plans experience similar anxiety.
This represents a fourfold increase in stress levels amongst the unprepared group.
Financial insecurity extends beyond general worry, with 57 per cent of non-planners expressing fears about exhausting their funds during retirement.
This figure stands at more than twice the rate observed amongst those with established financial frameworks, where only 22 per cent share such concerns.
Households are being urged to be more proactive when
| GETTYRetirement experts from the financial services firm note the statistics underscore how retirement planning directly influences both emotional wellbeing and financial confidence.
Kate Smith, the head of Pensions at Aegon, stresses that increased longevity and current economic difficulties make retirement preparation more crucial than ever.
She notes that while financial planning serves practical purposes in managing anticipated and unexpected retirement expenses, the research demonstrates its additional benefits for mental wellbeing and self-assurance.
"We all deserve a retirement we can enjoy, whatever your financial reality," Smith states. She clarifies that creating a financial strategy doesn't require adherence to rigid daily protocols or producing intimidating documentation.
According to Smith, effective planning can involve straightforward steps: assessing current assets, projecting future requirements, identifying personal priorities, and periodically revisiting these considerations.
In reaction to Aegon's findings, Ms Smith provided a practical guidance through five essential steps for retirement planning.
The initial phase involves cataloguing existing assets, including state pension entitlements, any workplace pensions accumulated since 2012's auto-enrolment introduction, and property holdings.
The second step requires calculating anticipated retirement expenditures, encompassing routine costs alongside age-related expenses such as potential care requirements or property modifications.
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DWP minister Liz Kendall has launched a new Pensions Commission | PAMs Smith's third recommendation focuses on identifying personally fulfilling activities that provide happiness without requiring substantial expenditure.
Documentation forms the fourth crucial element, as formalised plans demonstrate greater success rates than informal approaches.
Finally, Ms Smith advocates periodic reassessment to accommodate changing circumstances and priorities throughout retirement.
She added: “You don’t have to update your plan with every purchase you make, but as your situation or priorities change over time, it can be incredibly valuable to review your plan at regular intervals and make any necessary adjustments that allow you to feel confident you’re still on the right path."