Three in five retirees (62 per cent) with a pension pot started planning their pension income in the final year before retirement, according to a study from Legal & General Retail Retirement.

The research also found that almost one in three retirees (35 per cent) felt financially unprepared for retirement.

The survey was administered online, and 1,000 UK adults who had retired in the last five years were surveyed.

Despite these findings, around three in four respondents (72 per cent) believe that financial preparation is ‘very important’ for a happy and satisfying retirement.

Professor of economics at Sheffield University, Alberto Montagnoli, said early planning plays a “crucial role” in ensuring a worry-free retirement.

“Leaving it to the last minute could add unnecessary stress to these golden years,” he said.

“Adequate financial planning, including saving, investing and budgeting, can significantly impact the quality of life during retirement. Those who delay this critical planning often face unexpected financial challenges, which can detract from enjoying their retirement years.

“By taking proactive steps early, retirees can secure a more stable and fulfilling future, free from the anxieties that come with financial uncertainty.”

This comes after a recent study from Barnett Waddingham highlighted a “massive chasm” between the expectations and reality of retirement.

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