Three quarters (73%) of retirement savers either can’t afford to retire or were unsure if they could afford to retire, according to a new report.
Over a quarter told Financial Planner and wealth manager Schroders Personal Wealth (SPW) they will now have to delay their retirement by at least four years
Over a quarter (26%) of those surveyed said they were not sure how inflation would affect their retirement plans. However, not having enough money to retire (30%) was the biggest worry amongst UK savers, with a further 14% not sure how long their pension pot would last.
One in five (41%) of those over 55 had delayed their retirement or had made cutbacks to ensure they remain on track with retirement plans.
Only a quarter (27%) of savers over the age of 55 said they can still afford to retire in today’s high inflation environment.
Despite inflation being at its highest level since 1982, only half (54%) of UK savers surveyed were aware of the impact inflation is having on their savings.
Only half (59%) of savers do not know the interest rate their savings accounts are currently paying, according to new research.
Six in ten (56%) of savers thought the biggest impact to their finances from rising inflation would come from rising energy prices.
Only 3.5% of savers surveyed saw the impact of inflation on their savings as having the largest impact on their finances.
Ben Waterhouse, chief client office at Schroders Personal Wealth, said UK savers are more in need of good financial advice now than ever.
He said: “The impact of today’s high inflation on everyday lives, retirement plans and pension pots has been significant. Worryingly, our survey shows many people are unaware of its effect on their cash savings and retirement plans.
“It’s important that people do understand the impact inflation can have. Many may not see the true effect until it is too late and may find that their financial goals are no longer achievable.
“There are no magic solutions to solve inflation, but we do believe that it is in times like these the need for financial advice has never been greater.”
The SPW Inflation Watch Report surveyed over 1,000 UK adults between 18 and 80 about the impact rising inflation is having on UK consumers.
