Half of over-55s fear running out of money in retirement, study shows

Over-55s are worried about running out of money in retirement and are confused about retirement income options, research from behavioural finance experts Oxford Risk shows.

The study, with more than 1,000 over-55s, found that half – the equivalent of more than 10.5 million people – were worried that their retirement savings would not last their lifetime, compared to just 27% of those questioned who were not worried about running out of money.

Around one in eight (12%) were worried that they might have to depend on their children for financial support in retirement.

The study found that over-55s are waking up to the financial challenges of retirement, with around 86% believing it is important to have additional sources of income to fund their desired retirement in addition to the state pension.

The research also found that those with retirement savings had more financial comfort than those without, with those holding a Self-Invested Personal Pension (SIPP) having the most financial comfort.

Overall, Oxford Risk’s research showed confusion among individuals around how to take their retirement income – just 49% say they are clear on their options for retirement.

More than a third (34%) said they were not comfortable with the risks of having their pension invested in the stock market after they retire.

This was compared with 31% who say they are comfortable with the risks.