Not having enough money to live on in retirement is Britain’s biggest financial fear

Despite the news that there will be no further radical reform to pensions in the Budget next week, it is still no surprise that Britain’s biggest financial fear is not having enough money to live on throughout retirement (41 per cent).

The research by TopCashback, UK cashback site, reveals that a lack of savings for the future is driving the fear of not having enough money to live on in retirement for the vast majority (90 per cent). Furthermore, eight in 10 (83 per cent) are scared about not having enough money to be able to retire at all.

The survey of 2,000 UK adults finds that while pensions are the biggest worry, falling into debt is also a huge financial concern for over a third of the population (35 per cent). Unsurprisingly, the research also lists being unable to save (30 per cent), not having enough money to cover monthly expenditures (29 per cent) and not being able to afford a comfortable lifestyle (29 per cent) as other top financial fears. 

Confusion and a lack of understanding, which so often go hand in hand with fear, may be at the root of this worry. Of those who have struggled with making the right financial choices (43 per cent), almost two thirds (63 per cent) blame their wrong decisions on not fully understanding their financial situation, while 61 per cent say it was because they did not realise the consequences of their bad spending and saving habits. 

Understanding one’s economic situation can also make a big difference in demystifying finances, especially for those who have mismanaged their money in the past (43 per cent). More than half (53 per cent) blame poor money management on overspending and taking out loans they could not pay back. This is in addition to living outside of their means (53 per cent) and not realising the consequences of having low saving funds (35 per cent).

Natasha Rachel Smith, Consumer Affairs Editor for TopCashback.co.uk said: “Finances can be a very tricky and daunting subject, particularly areas such as pensions, investments and even day-to-day money management. Many people can have a tendency to ignore financial matters because they find them too difficult to understand or because they don’t fully appreciate their financial situation. However, there are some simple measures that consumers can use to take control of their finances and ultimately, feel more financially confident. By evaluating their financial circumstance, checking credit scores and reviewing their monthly income against their outgoings, people can start to get to grips with their financial status.

“When it comes to money management, people can take advantage of comparison tools and cashback sites to ensure that money spent on essentials such as the weekly shop and insurances is stretched as far as possible, generating savings and getting money back which helps not only to balance the books, but also to support a healthy financial future.”