Fewer than one in 10 people are very confident they will be comfortable when they stop working, according to a new survey from NFU Mutual.
Just 9% of respondents to the poll were unfazed by their retirement finances, while over half of people aged 25 to 54 were either nervous or unsure.
30% of people were ‘somewhat confident’ their pension would fund their retirement – with 16% revealing they did not have a pension pot at all.
The survey of more than 2,000 people taken from across Great Britain was commissioned by NFU Mutual for Talk Money Talk Pensions week – which was set up by the government’s Money and Pensions Service.
It found that more than 40% of people aged between 35 and 54 are nervous about their finances in retirement – compared to 23% of people aged 18-24.
On average, respondents thought £17,578 each year was enough to live a basic lifestyle in retirement – and £33,210 would be enough for a desirable lifestyle.
Only 6% of people who work pay the maximum amount into their workplace pension – with 42% of people paying the minimum requirement.
11% of people who work opt out of their workplace pension altogether.
More than three-quarters (77%) of self-employed respondents do not pay into a pension.
Richard Needham, senior pension specialist at NFU Mutual, said: “A lot of people are nervous about their financial future, with many unsure about how much they need to have saved in order to pay for the retirement lifestyle they would want.
“For many working adults, this is often the unspoken problem looming on the horizon that can seem too big to tackle.
“However, it is crucial to start thinking about pensions as early as possible and to keep regularly reviewing those plans to maximise the benefits they deliver.”
