More than half of UK adults are worried that their standard of living in retirement will be lower than their predecessors, new research by SmartSave has revealed.
According to the digital bank, 54% of UK adults feel their standard of living will be worse than that of their parents or grandparents in retirement, with more than a third (37%) of those in work anticipating that they will not have the means to financially help their children or grandchildren.
Two fifths (40%) of those surveyed said they are financially worse off than they were two years ago rising to 46% among those aged 35-54.
Meanwhile, just over a fifth (22%) felt that if the cost of living continues, they’ll have no choice but to reduce or cancel their pension contributions.
Against this backdrop, 23% of people said they are considering retiring abroad due to the cost of living in the UK.
Andy Mielczarek, CEO of SmartSave, said for many the traditional notion of a “well-earned retirement” is becoming less and less assured.
He said: “Savers are increasingly likely to think that a decent retirement is out of reach compared to earlier generations. Saving not only for your own retirement but for the future prosperity of your family is one of the great motivators of success so to see such insecurity in the outlook of these respondents is disheartening.
“Cancelling pension contributions to afford the cost of living is inherently unsustainable and it’s clear that the challenges of today are having an impact on tomorrow.”
Mielczarek said it is critical that consumers are provided with the freedom to fulfil their financial goals, especially when it comes to creating retirement plans.
“The variety of savings and investing options available today is promising, but the financial industry must do more to increase public education and awareness. This will ensure people can make educated decisions and achieve their desired futures when leaving the world of work,” he added.
