Recent research has revealed that more than half (57%) of retirees are concerned about the cost of elderly care and lack of funding.
However, according to Age Partnership, this is despite that fact that 85% are yet to factor the cost of care into their retirement plans, including 90% of respondents who were already retired.
The Whitepaper, which looked at British adults of all ages, questioned whether the UK is retirement ready, analysing industry research.
It found that the basic state pension of £122 per week falls short of the £208 average a retired person lives off. This indicates that each month, pensioners must find a further £340 to make up the shortfall.
This is particularly concerning when looking at the reliance placed on the state pension, with an average of 68% of respondents saying that they already do or will be relying on the State Pension to fund their retirement.
However, the expectation of using this as the main form of income in retirement decreases for younger age groups, with the Financial Conduct Authority’s (FCA) Financial Lives Survey revealing that just 26% of respondents aged 45 – 54 anticipate that it will be their prime income source.
For those that are currently in retirement, the dependency becomes a lot more significant. The FCA survey found that for over half (56%) of retirees aged 85 and over, the State Pension is the main source of income.
On a reflective note, the retired respondents to the Age Partnership survey were asked to recall the advice they received on later-life funds. 58% stated that they wish more advice and help have been available when they were younger, suggesting that steps need to be taken to improve awareness as to the importance of planning for retirement and the long-term benefits of saving for later life.
