More than a million people aged 45 and over are heading towards retirement without any cash savings, research from nonprofit Fair4All Finance shows.
Almost three in five people aged 45 and over have less than £1,000 in savings.
Older workers’ finances have been hit in the past two years by soaring inflation, eroding their savings as they work toward retirement. More than one in four depends on savings as their main source of income.
During a crucial period for retirement planning, many are forced to deal with persistent debt on top of trying to build up their savings, says Fair4All Finance.
Retirement Threat: Older workers’ finances have been hit in the past two years by soaring inflation, eroding their savings as they work toward retirement.
Currently, three out of five people over 45 years of age have at least one outstanding debt.
Industry body the Pensions and Lifetime Savings Association (PLSA) says a single person needs £43,100 a year for a comfortable retirement and a minimum of £14,400 a year.
This assumes that retirees own their home, but in reality many are facing retirement rent or still paying a mortgage.
Diane Burridge, of Fair4All Finance, says: ‘For many older people, the cost of living crisis could have a permanent impact on their financial stability and mean millions of people retire in name only.
“We know from experience that retiring while still renting is incredibly difficult and puts greater strain on people’s finances in the future.”
L.evans@dailymail.co.uk