Blog > 1-in-2 people are concerned about retirement savings

1-in-2 people are concerned about retirement savings

Worried mature couple

By Richard Groom • 11th April 2024 • 3 min read

Research uncovers people’s worries about an income shortfall in retirement

New research has shown the extent of people’s concerns about how much money they will have in retirement. The headline news is that most people say they haven’t saved enough for the retirement income they would like. 

The research, from Investec Wealth & Investment as reported by FundsTech Forum and IFA Magazine on 12 March, uncovered some concerning statistics:

  • Over 50% of pre-retirement respondents say they haven’t saved enough for their retirement. 
  • Around 25% of retirees say that their income dropped by half or more when they retired. 
  • Among those aged over 65, a third are worried about outliving their savings.

On the other hand, some people are more confident about their retirement finances:  

  • Around 20% said that they won’t experience a drastic reduction in their income when they retire. 
  • Some 43% in retirement reported feeling secure due to final salary pension schemes.

Ade Babatunde of Investec Wealth & Investment (UK) said: “It is worrying to see the high numbers of people with retirement savings who are worried about running out of money in retirement and not having enough money saved.

“Some of it may be explained by people worrying ahead of their actual retirement and that is a good thing if it encourages them to save more and to seek professional financial advice. However, one in three over-65s are worried about running out of money.”

A third of people have reduced or stopped their pension contributions

It is interesting that separate research by Investec in February found that, despite concerns about their future retirement income, many people have reduced or stopped their pension scheme contributions.

As reported by Insurance Edge, the research found that nearly two-out-of-five pension investors have stopped contributions or cut back on payments in the past five years:

  • 25% have stopped paying into their pensions.
  • 12% have dramatically or slightly reduced monthly contributions.

When asked why they had cut or stopped their monthly pension contributions, the main reasons given were moving jobs or having their pay cut (26%), the cost-of-living crisis (25%) and the impact of the Covid-19 pandemic (13%).

But around 11% of people said that they have actually increased how much they are saving for their retirement each month in recent years.

What are some ways to top up your retirement income?

With more than half of people saying that they haven’t saved enough for retirement, how might you top up your income once you leave full-time employment?

Here at Equity Release Wise we know that supplementing retirement income is one of the reasons people decide to take out an equity release plan. When your State Pension, private pension, savings and investments aren’t enough to meet your income needs, equity release may be the answer.

Other ways that retirees may be able to bring additional income into the household include downsizing, selling unwanted possessions, taking a part-time job or renting out a spare room to a lodger.

Retirees on modest incomes should also check their entitlement to state benefits such as Pension Credit. Thousands of people may be missing out on benefits they are entitled to. Visit these pages at, and for tools to help you check what benefits you can get.

About Richard Groom. A writer with 20+ years’ experience across several sectors including financial services, Richard has a passion for writing clear and simple content on even the most complex of subjects. In his spare time, Richard loves exploring the hills and mountains of the UK on long walks with his faithful cocker spaniel. Follow Richard on LinkedIn

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