Less than a fifth of people on middle incomes feel prepared for retirement

18 October 2023 , 15:36

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The research included a survey of 3,000 adults across the UK. (Image: PA Archive/PA Images)

A recent survey reveals that only 19% of middle income earners aged between 32 and 40 feel ready for retirement.

The study, conducted by Aviva, defines middle income earners as those with an annual personal income ranging from £25,000 to £44,999.

Only one in ten of these individuals have sought professional advice regarding their retirement plans. Aviva expressed concern that people might "set and forget" their default choices around pension contribution levels, retirement age, and investments, mistakenly believing that this will be enough to meet their retirement expectations.

Emma Douglas, director of workplace savings and retirement at Aviva, said: "Default strategies and settings will meet the needs of a wide range of investors with different ages, backgrounds, and income levels and, for many, they can be the right choice."

She added, "By their very nature, default investment strategies are designed to do the 'heavy lifting' for you, putting the investment decisions in the hands of the experts."

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However, she also emphasised that while defaults are essential, making small active changes to your pension, particularly increasing contribution levels, can have a significant impact.

The research included a survey of 3,000 adults across the UK, carried out by IPSOS.

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Steve Charnock