The majority of people approaching retirement have yet to make a formal plan for their later life, according to research from Just Group.

The study, published as part of Just Group’s GenVoices programme, found that only 6 per cent of Generation X workers (aged 43-59) and 7 per cent of working Baby Boomers (aged 60-78) have a written retirement plan.

A further 13 per cent of Gen X and 22 per cent of Boomers said they had a plan but not in writing.

However, the vast majority admitted to having only a vague idea, or no plan at all.

Indeed, around a quarter of each cohort - 24 per cent of Gen X and 26 per cent of Boomers - said they had “a vague idea”, while 25 per cent of Gen X and 27 per cent of Boomers had either no plan or had never considered making one.

Just Group communications director, Stephen Lowe, warned that many people were “risking reaching retirement unprepared”.

“Retirement is looming for both cohorts, but our research shows the vast majority have not made a formal plan for how they want to retire,” he said.

“The most obvious issue for these groups is that time is running out for them to put money into pensions and other investments for retirement, but that assumes they can continue to work until state pension age or later.”

Lowe also cautioned that people forced to leave work early due to illness or redundancy could see their finances undermined “before they even begin” retirement.

Consequently, he urged people to start planning earlier - ideally in their 40s - to give themselves time to adjust their lifestyle and savings habits.

“There are resources available to help people create a smooth glide path into retirement,” Lowe added.

“It’s important to keep on top of key information such as the value of your pensions and the amount of state pension you will receive and at what age.”

He highlighted the government’s free online midlife MOT tool and the Pension Wise guidance service as valuable sources of information, alongside the “retirement readiness” calculators and planning tools increasingly offered by pension schemes.

“A regulated adviser can also help set your objectives and recommend ways to achieve them, providing a written plan that is reviewed regularly to ensure it remains on track,” stressed Lowe.

The findings echo recent research from AJ Bell, which found that Gen Z believe they would need almost double the annual income that Boomers consider sufficient for a ‘comfortable’ retirement, yet 21 per cent of Gen Z respondents reported having no retirement savings.

Just Group said the findings underline the need for greater engagement and education among those nearing retirement to avoid financial shortfalls later in life.

Indeed, almost three-quarters (76 per cent) of UK adults believe that pensions are not taught or discussed enough in schools or during early adulthood, research from Wealthify found, amid a persistent lack of knowledge about pensions.

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