MGM Advantage claims 95% of pensioners are unprepared for retirement

Just 5% (299,000) of non-retired adults in the UK aged 55 and over feel fully prepared for retirement, according to the latest Retirement Nation Report from retirement income specialist MGM Advantage. This figure is even starker compared with the 2008 report, when 39% said they felt fully prepared.

The survey showed that 1.2 million adults in the UK (21%) aged 55 and over and still working do not feel at all prepared for retirement. Half of women (50%) nearing retirement age do not feel at all prepared for retirement compared with 42% of men.

Just seven million people (15%) have sought financial advice about products such as pensions, enhanced annuities and equity release from a professional, while 8% have consulted their bank and 6% have sought retirement advice from friends.

Furthermore, 35% of people aged 65 and over who are still working expect to keep working until they are at least 71 years old, and 9% of this age group plans to work beyond the age of 80.

Craig Fazzini-Jones, director at MGM Advantage, said: “It is hugely worrying that so many people nearing retirement are unprepared for the financial implications of this stage of their lives.

“Part of the problem is that relatively few people seek professional advice before they retire, but it’s crucial that people are extremely proactive in checking their finances at this time.

“This lack of financial planning means that more people will have to work longer to ensure that they have an adequate income in retirement.”