Almost half of Brits (44%) reckon they will retire before their current state retirement age even though only 54% of them have a financial plan in place, new research suggests.
Among the fifty-five-year-olds and above of early retirement hopefuls, only 48% had a retirement plan.
Meanwhile people who plan to retire later are even less prepared with only 28% having a clear plan.
Digital bank SmartSave, part of Chetwood Financial, surveyed 2,000 UK adults.
More than a third (37%) of those hoping to retire early said that they don’t know how many pension pots they have and how much is in them, with the figure increasing to 49% among later retirees.
More than two-fifths (43%) of those surveyed said they were prompted to contribute more to their retirement savings by rising interest rates, with more than half (52%) planning to finance their retirement by relying primarily on their workplace pension.
Of the 44% planning to retire at the current retirement age (66, rising to 67 in 2026), 58% said they still plan to work in some capacity – freelance, part-time, contractor – after retirement.
Andy Mielczarek, founder and chief executive of SmartSave, said: “There is a knowledge gap between saver’s expectations for retirement and their realistic prospects. Nobody can afford to sleepwalk through preparing for later life, and Brits need to arm themselves with all the tools and resources at their disposal to secure for themselves the brightest possible future.”
He called on the financial sector to do more to educate people about their financial wellbeing.
• The market research was carried out between 1 and 6 February 2024 among 2,000 UK adults via an online survey by independent market research agency Opinium.
