Just one in five (20 per cent) savers are confident that they can fund their retirement properly through their savings, pensions and investments, according to research from SunLife.

The report, Finances after 50 2021, found that nearly a third (32 per cent) of people over 50 are worried that they w ill not have enough money to live on in the future, with 16 per cent admitting that they have less than £100 in savings, and no rainy day provisions.

It also revealed that 25 per cent of savers have no private or company pension to supplement their income in retirement, warning that the majority will either need to rely entirely on the state pension, or continue working.

Indeed, just over one in ten (12 per cent) expect to fund their retirement by continuing to work, whilst 39 per cent remain "hopeful" that they have built up a big enough pension pot.

'Not having enough to get by' was cited as the main reason for future financial worries in the future, followed by concerns over having a pension shortfall in second place, and fears around not being able to pay bills.

This is despite the proportion of people over 50 with a private pension increasing by three per cent since 2019, and the average pension pot also increasing from £141,712 in 2019 to £166,579 in 2021.

Furthermore, despite these concerns, the report revealed that holidays were the top reason to save amongst over 50s, with 49 per cent of respondents saving for this, compared to 48 per cent saving for retirement, and 36 per cent for living expenses and home improvements.

SunLife marketing director, Ian Atkinson, commented: “The past year has impacted so many of us – but it’s also given many a moment’s pause to reflect on our finances and indeed our retirement prospects.

“Our annual ‘Finances after 50’ report highlights the trends among over-50s specifically in relation to savings, investments – and what we’ve noticed particularly this year is anxieties around having enough money to live on in the future.

"Many people told us they fear that they won’t have enough money to pay their bills, and some even told us they fret about not being able support and feed their families when they give up work.

“While it’s not uncommon to adopt a short-term view when it comes to saving, a large proportion of people could end up paying the price further down the line if not managed properly early enough.

“For those concerned, we would advise taking a longer-term and holistic view regarding their savings and investments, and ultimately to make use of financial support to be armed with the right tools when approaching retirement.”

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