A large minority of over-40s do not believe they will have enough money for a comfortable retirement, according to new research from Netwealth.

A survey carried out by the wealth manager found 41 percent of 4,750 UK savers aged 40 and over believe it is unlikely that they will have a large enough savings pot for a comfortable retirement, which is estimated to be £430,000 by the PLSA.

Fewer than a fifth (19 per cent) expressed confidence in their retirement preparedness, although 51 per cent of this group have failed to factor in the impact of inflation when making financial plans for the future.

Overall, nearly half (45 per cent) of respondents admitted they have not calculated the cost of re-tirement and a further 15 per cent revealed that they are not saving for retirement, even though they are aware that their current savings are insufficient.

Netwealth said the findings indicate that a significant proportion of the population are over-looking crucial steps in the run up to retirement, at a time when retirement savings are having to stretch further as the ONS says average life expectancy has now reached 81 years of age.

“The alarming reality that nearly half of respondents, who are aged 40 and over, haven’t even considered what they will need in retirement is of huge concern," said Netwealth CEO and founder, Charlotte Ransom.

“In a challenging economic environment, the risk of not being able to afford the type of retire-ment that you expect is greater than ever. Without adequate planning, you may find yourself having to make difficult choices, such as cutting back on everyday expenses, compromising on healthcare, or foregoing luxuries you had hoped to enjoy.”

Ransom added that inflation is another hidden cost which individuals need to factor into their calculations to secure a comfortable future.

She said there are some simple steps that people can take to be better prepared, such as saving as early as possible to benefit from compound growth. Ensuring investments are diversified is also important, she says.

"If you are already investing, it is vital that you understand the associated fees and whether these pots are working as hard as they can be to accumulate value – all-in fees are the single biggest detractor from final retirement pots and are within our control to avoid," she added.

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