Around 13 million Britons are at risk of falling short in their retirement savings, according to Pension Potential. Steve Butler, Managing Director of Pension Potential, warns that immediate action is needed as we head further away from Christmas.
He said: “As we enter 2025, it’s crucial that people stop avoiding the reality of their retirement needs – planning for a secure retirement is no longer optional, it’s essential. This is the year to act, before it’s too late.”
Nearly two-in-five working-age adults in the UK are not saving enough for a comfortable retirement, new figures have shown. Pension Potential, recently recognised as a leader in hybrid retirement solutions by Defaqto, offers online retirement calculators and an all-market annuity search engine.
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Users can connect with financial advisers via video call for guidance on retirement products. It comes after it emerged 69% of more than 885,000 pension pots accessed for the first time in 2023/24 were accessed without advice.
Most also took an unsustainable rate of withdrawal with the vast majority opting for 8% per annum or more. Hybrid solutions are aiming to help counteract this and the “pioneers” of this market in the last 12 months that advice firms can white label have been revealed by Defaqto.
Ade Babatunde, Chartered Financial Planner at Investec Wealth & Investment (UK), said: “It is worrying to see the high numbers of people with retirement savings who are worried 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, one in three over-65s are worried about running out of money. Ideally, people should save as much as possible for as long as possible and we would urge anyone concerned about retirement savings to talk to a financial adviser.”