'˜Mid-life savings crisis' hits nearly one in five workers in 50s and 60s
Some 18% of workers in this age group surveyed for Aviva say they are unable to save anything for their retirement, as everyday living puts too great a strain on their finances.
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Hide AdAviva’s Real Retirement report found two-thirds (64%) of workers in their 50s are yet to ramp up their pension saving in the run-up to retirement.
And just over half (54%) of those in their 60s - who are fast approaching or may even have passed the eligible state pension age - are yet to increase the amounts they are saving into their retirement fund.
More than 3,300 over-50s were included in the latest report.
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Hide AdOffice for National Statistics (ONS) figures showed this week that the Consumer Prices Index (CPI) rose to 3.1% in November, up from 3% in October.
It means inflation has climbed to its highest level since March 2012, spelling more misery for households as they face a further squeeze on their finances.
Lindsey Rix, managing director, savings and retirement at Aviva, said: “As the cost of living creeps up and wage growth continues to slow, saving for retirement in the current climate is particularly challenging.
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Hide Ad“For many older workers supporting family members including children and parents, saving for retirement can all too easily take a back seat in terms of financial priorities.”
She said concepts like a “mid-life financial MOT” or career review to help those in their 50s take stock and plan for later life, including health and wellbeing as well as financial priorities could help.