Business

One in four workers 'think retirement will be a financial struggle'

Only one in seven (13 per cent) people aged 56 to 65 think they will have enough cash to really enjoy their retirement

OLDER workers are more downbeat about their chances of having enough money to enjoy themselves in retirement than younger employees, a survey has found.

Only one in seven (13 per cent) people aged 56 to 65 think they will have enough cash to really enjoy their retirement, and just 12 per cent of 46 to 55-year-olds share the same view.

This compares with nearly a quarter (24 per cent) of 22 to 30-year-olds and 19 per cent of 31 to 45-year-olds who are confident they will have enough put by to really enjoy their later years.

Across all age groups, nearly a quarter (23 per cent) of workers believe their retirement is likely to be a financial struggle.

In April, minimum contributions will rise to 8 per cent of earnings, including top ups from employers and the Government.

Travelling, pursuing hobbies and giving money to children and grandchildren will be the top priorities for people when they do retire, the Aviva survey of more than 2,000 22 to 65-year-olds across the UK found.

Alistair McQueen, head of savings and retirement at Aviva, said: "Retirement should be something we all look forward to, but we should be aiming to thrive, not just survive."

A Department for Work and Pensions spokesman said: "Average pensioner incomes have reached their highest levels since records began thanks to the Government's commitment to the triple lock and wider reforms.

"Automatic enrolment into workplace schemes has boosted the pensions prospects of almost 10 million people so far, setting them on the path to a financially secure retirement.

"We know there is more to do in terms of increasing contribution rates, and a further rise is due in April."

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