More than a million people aged 45 and over are heading towards retirement with no cash savings, research from not-for-profit Fair4All Finance shows.
Almost three in five over‑45s have less than £1,000 in savings.
Older workers’ finances have been pummelled in the past two years by soaring inflation, eroding their nest eggs as they work towards retirement. More than one in four rely on savings as their primary source of income.
During a crucial period for retirement planning, many are being forced to tackle lingering debts alongside trying to build up their savings, Fair4All Finance says.
Retirement threat: Older workers’ finances have been pummelled in the past two years by soaring inflation, eroding their nest eggs as they work towards retirement
As many as three in five over-45s currently have at least one outstanding debt.
Industry body The Pension and Lifetime Savings Association (PLSA) says a single person needs £43,100 a year for a comfortable retirement and a minimum of £14,400 a year.
This assumes retirees own their home, but in reality many face retirement renting or still paying off a mortgage.
Diane Burridge, of Fair4All Finance, says: ‘For many older people, the cost-of-living crisis could have a permanent impact on their financial stability and mean millions become retirees in name only.
‘We know from experience that retiring while still renting is incredibly tough and puts further strain on people’s finances in later life.’
L.evans@dailymail.co.uk
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