Half of those over 55, the equivalent of more than 10.5 million people, are worried that their retirement savings will not last their lifetime, an Oxford Risk study has revealed.

The survey found that just over a quarter (27 per cent) of those questioned were not worried about running out of money, with around one in eight (12 per cent) worried that they might have to depend on their children for financial support in retirement.

However, over-55s are ‘waking up’ to the financial challenges of retirement, according to Oxford Risk, with around 86 per cent believing it was important to have additional sources of income, alongside the state pension, to fund their desired retirement.

Despite this, it also revealed “widespread confusion” about pension savings, with just 49 per cent saying they were clear on their retirement options.

There was divided opinion on risk, with more than a third (34 per cent) saying they were uncomfortable with the risks of having their pension invested in the stock market after retirement, compared with 31 per cent who said they were comfortable with the risks.

"Unsurprisingly", the research found that those with retirement savings had more financial comfort than those without, with those holding a Self-Invested Personal Pension (SIPP) having the most financial comfort of any method people intend to use to fund their retirement.

Oxford Risk head of behavioural finance, Greg B Davies, commented on the findings: “People approaching retirement face a series of critical decisions that will shape their lifelong financial wellbeing, and it’s clear that many feel confused and uncertain about their options.

"The biggest concern for many is ensuring their savings will last throughout their retirement. Personalised financial planning is essential to help individuals feel confident and comfortable with their choices.

“For advisers, the challenge lies in consistently providing the right answers for each investor’s unique needs - a task that becomes increasingly difficult without the right technology.”

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