‘Mid-life savings crisis’ hits nearly one in five workers in 50s and 60s
Some 18% of workers aged in their 50s and 60s are unable to save anything for retirement, Aviva has found.
Nearly one in five workers aged in their 50s and 60s is going through a “mid-life savings crisis”, research suggests.
Some 18% of workers in this age group surveyed for Aviva say they are unable to save anything for their retirement, as everyday living puts too great a strain on their finances.
Aviva’s Real Retirement report found two-thirds (64%) of workers in their 50s are yet to ramp up their pension saving in the run-up to retirement.
And just over half (54%) of those in their 60s – who are fast approaching or may even have passed the eligible state pension age – are yet to increase the amounts they are saving into their retirement fund.
More than 3,300 over-50s were included in the latest report.
Office for National Statistics (ONS) figures showed this week that the Consumer Prices Index (CPI) rose to 3.1% in November, up from 3% in October.
It means inflation has climbed to its highest level since March 2012, spelling more misery for households as they face a further squeeze on their finances.
Lindsey Rix, managing director, savings and retirement at Aviva, said: “As the cost of living creeps up and wage growth continues to slow, saving for retirement in the current climate is particularly challenging.
“For many older workers supporting family members including children and parents, saving for retirement can all too easily take a back seat in terms of financial priorities.”
She said concepts like a “mid-life financial MOT” or career review to help those in their 50s take stock and plan for later life, including health and wellbeing as well as financial priorities could help.
A Department for Work and Pensions spokesman said: “Our pensions reforms are setting millions of people on the path to a financially secure retirement, with the new state pension providing a strong foundation for people to build on through their private pensions savings.
“Automatic enrolment has transformed the way people save, with more than nine million people now enrolled into a workplace pension.
“But we know that many still aren’t building up enough savings, so we are increasing contributions in April 2018, and again in April 2019.”