Research by at-retirement adviser MyPensionsExpert found that a third of over 40s in work worry whether their retirement savings will stretch enough to allow them to enjoy Christmases once they stop working.
The research also uncovered that individuals over 40 in the UK resonate with the importance of financial planning at this time of year, with 37% realising the significance of financial security in retirement during the Christmas period.
31% say spending more during the Christmas period makes them more anxious or worried about the state of their finances – rising to 40% amongst those still in work.
When it comes to this Christmas, 46% say economic challenges like high inflation and rising interest rates have made it more difficult to prepare financially for Christmas. Further, 30% of respondents intend to tighten their belts by spending less this Christmas.
Meanwhile, 20% of over 40’s are concerned about the upcoming general election’s potential impact on their retirement planning in the New Year.
Lily Megson, policy director at My Pension Expert, said: “It’s been a difficult year for pension planners. And unfortunately, the festive season offers no respite. Economic hurdles, such as high inflation and rising interest rates, have understandably cast a shadow of uncertainty over the holiday season for a significant portion of UK adults for another year.
“It’s clear that those preparing for retirement need to be supported through economic uncertainty, helping them make the most of their budgets without sacrificing their usual festive activities. In this context, the value of professional financial advice shines through.
“Independent financial advice can help people feel more financially confident and enjoy the festive period without constantly worrying about how spending will impact their financial futures. The holiday season should be a time of joy and celebration, and financial advisors play a crucial role in ensuring that individuals can experience it without the burden of financial concerns.”
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