Nearly two-thirds (64 per cent) of mid-retirees haven’t discussed with family and friends who would manage their finances if they became unable to do so, according to research by Aviva and Age UK, highlighting a gap in support and guidance for mid-retirees during retirement.

The report Retirement Reality: Managing Money in Mid-Retirement, which surveyed 1,000 mid-retirees (aged 65-75) who have a private pension, are on a moderate retirement income, and have not taken financial advice, found that 81 per cent of respondents don’t have a lasting power of attorney in place.

In addition to this, 39 per cent have not yet considered how they will manage their finances as they age, particularly into their 80s or 90s.

The research also showed that many people are not well-informed about their partner's pension, as 36 per cent said they know all the details of their partner’s pension.

Meanwhile, 84 per cent of respondents who are part of a couple have not checked if they are nominated as a beneficiary to their partner’s pension.

The modelling for the report, by the Pensions Policy Institute, showed that despite homeowner couples possibly being able to meet the considered minimum income standard in retirement, the death of one partner can “significantly” reduce household income and potentially leave the surviving partner financially vulnerable.

Aviva wealth policy director, Emma Douglas, said: “Our findings suggest that mid-retirees might be in danger of drifting into later-life retirement without a clear financial plan, which could leave them vulnerable, especially in the event of cognitive decline or the loss of a partner.”

She explained that although there is no one-size-fits-all solution, it is “crucial” for better financial planning for savers to take the time to understand their household retirement income and what would happen if circumstances changed.

This disengagement was also highlighted in Standard Life’s Retirement Voice report, which found that UK adults are increasingly prioritising short-term enjoyment over long-term financial security.

The research found that 28 per cent of Brits prefer to live for today rather than plan for the future.

Indeed, just 15 per cent of respondents said that contributing to their pension is one of their top financial priorities, compared to managing day-to-day finances (40 per cent) and saving for holidays (31 per cent).

However, Standard Life pointed out that this mindset persists despite growing awareness that auto-enrolment alone might not guarantee a comfortable retirement, with 35 per cent recognising they might not be saving enough.

The report also suggested that a growing sense of uncertainty could be influencing people’s attitudes to the future, as 47 per cent of respondents said their retirement prospects feel shaped by forces beyond their control, and 83 per cent feel the world is less stable than it was in previous years.

More than half indicated that changes in the UK (59 per cent) and globally (57 per cent) were reasons for lower confidence in their financial futures.

Commenting on the figures, Standard Life retirement savings director, Mike Ambery, said: “It’s understandable that many people are focusing on meeting their day-to-day costs, and prioritising a well-earned break.”

However, he stressed that even in tougher times, keeping an eye on the future can make a "big difference" and that regularly putting something aside for later life, however small, can help keep savers' long-term plans on track without missing out on what matters today.

This research coincides with Talk Money Week, the Money & Pensions Service's yearly campaign encouraging people to have more open conversation about their finances.

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