Recession depletes UK’s retirement finances

Thirty five per cent of UK consumers believe their retirement funds have been depleted by the recession, forcing them to look for additional ways to supplement their retirement income, according to research from Aviva – UK insurer with 7 million life and pensions customers.

In a poll of more than 1,200 people approaching retirement, nearly a quarter of respondents (23%) say that in the last year they have had to cut their outgoings to enable them to save enough for their retirement. More than one in ten (12%) agree that over the past year they have begun looking for additional sources of income to supplement their pension pot.

The research highlights that retirement funding weighs heavily on the minds of UK consumers with a quarter (26%) admitting financial worries and making ends meet are their main concerns for the future. The most prevailing worries are the rising cost of living, which is troubling one in three of respondents (32%), whereas 19% are concerned that their pension pot will not be worth as much as they originally planned and one in five (22%) are worried about the falling value of their savings.

But perhaps most worrying is that some have no retirement provision currently in place, with 5% of respondents - the equivalent of 3,070,000 Brits - admitting that they will be relying on part time work to fund their retirement.

Brian Bussell, director of pensions, UK Life, Aviva, comments: "At Aviva we want to help people have the kind of the retirement they deserve, but we also appreciate that many people are facing challenging times financially. These latest figures highlight just how important it is for people to start saving for retirement as early as they can.

"Understandably, the recession has forced people to think about their retirement income and many have realised that they may not have sufficient funds to live through their final years in the comfort they have grown accustomed to.

"We would encourage people to make use of their full range of assets, including investments, state benefits, pensions and property, to make sure that they aren't effectively cheating themselves out of the lifestyle they could enjoy. We would also urge people to begin saving as early as possible for their retirement to make sure they do not have to make major lifestyle changes later in life."