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Millions of adults rely on ‘guesswork’ for retirement planning – Standard Life

One in six (16%) said they relied on guesswork or gut instinct to work out how much money they would need for a secure retirement. 

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Millions of adults rely on ‘guesswork’ for retirement planning – Standard Life
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Millions of UK adults are heading towards retirement without a clear plan, a report from Standard Life had found. 

One in six (16%) said they relied on guesswork or gut instinct to work out how much money they would need for a secure retirement. 

Almost two in five (39%) admitted they had not calculated what they would need at all. 

Among Generation X, this figure reached 43%, while 34% of Baby Boomers said the same. 

Nearly half (47%) were worried their savings would not last the full length of retirement, including 31% of Baby Boomers.

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Dean Butler, managing director for retail direct at Standard Life, part of Phoenix Group, said: “Planning for retirement can feel daunting, and with so many factors at play it’s not surprising that people often resort to guesswork. 

“Part of the challenge is that calculating how much you’ll need involves a lot of moving parts – inflation and your expected retirement date are considerations, as are your lifestyle goals and any additional income sources. 

“Without the right tools or support, it can be difficult to know where to start.”

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Butler added: “Connecting with your future self can be an issue too. Retirement can feel very distant, especially when you’re busy judging the demands of everyday life. 

“It’s tempting to put retirement planning off or assume it will all make sense in the end, but the delay can be costly. 

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“The good news is that help is available and with a few small steps, like regularly reviewing your current level of savings and using an online pension calculator, you can start to build a clearer picture of what you’ll need.”

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Butler outlined that people should first decide when they want to retire and check if this matches the retirement age on their pension plans, as the State Pension age is currently 66 and will rise to 68 from 2026. 

He advised checking with employers or pension providers about changing retirement age, as this might affect investments.

He also said it is important to understand the different ways to access pension savings, such as drawdown, lump sums or buying an annuity, and to confirm which options are available with current providers.

Additionally, Butler added that people should work out how much they will need in retirement based on the lifestyle they want, using tools like the Retirement Living Standards as a guide. 

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He said it is key to check if current pension savings can support this lifestyle, and suggested using pension calculators and considering all income sources, including part-time work or property, to make sure savings last.

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