Around one in two people in the South-West are worried about running out of money in retirement

Fear of running out of money in retirement is rising among those in the South-West with nearly half (47%) concerned their savings will not last them through retirement, new research* from Investec Wealth & Investment (UK) shows, which has an office in Exeter.

In general, women are more worried about running out of money compared to men. More than half (54%) of women surveyed are concerned about how long their money will last in retirement, compared to only 44% of men. Around 46% of men who are not worried about running out of money in retirement say it is because they have a final salary pension scheme – compared to just 38% of women who have this.

The study by Investec Wealth & Investment (UK), part of Rathbones Group, among people with stock market investments including pensions, paints a bleak picture – around 51% of those living in the South-West are concerned they do not have enough money for retirement. This is just behind the UK average of 56%.

Women are more worried than men that they do not have enough money for retirement. Almost two thirds (61%) of women surveyed are concerned, with 18% of these very concerned they do not have enough money for retirement. This compares to just over half (53%) of men surveyed, with 14% of these very concerned they do not have enough money for retirement.

 The Investec Wealth & Investment (UK) study shows around three out of four (73%) retired people living in the South-West say their monthly income has dropped since stopping work. There is a similar pattern between men and women, with 76% of women saying their monthly income has dropped since stopping work, compared to 78% of men who have experienced this.

Those living in the South-West who have yet to retire are realistic about what will happen to their incomes in retirement – 67% expect their monthly incomes to drop on retirement and just 3% expect it to increase with 3% saying it will stay the same. The other 27% did not know.

The table below shows the picture around the country:

Ade Babatunde, Chartered Financial Planner at Investec Wealth & Investment (UK), said: “It is worrying to see that there are high numbers of people in the South-West concerned about running out of money in retirement and not having enough money saved.

“Some of it may be explained by people worrying ahead of their actual retirement and that is a good thing if it encourages them to save more and to seek professional financial advice. However, ideally people should start saving as early as possible, as the sooner you begin to save, the bigger your pension pot is likely to be. The larger your pension pot is at retirement, the more options and flexibility you will have when you come to draw an income. Therefore, we would urge anyone concerned about retirement savings to talk to a financial adviser.”