Pension savers are not financially prepared for their retirement years, according to MGM Advantage.

Their annual survey revealed that 1.2 million British adults who are 55 and older and still working do not feel at all prepared for retirement and almost half said that they are ‘not at all prepared’ for retirement. 

And more worryingly just seven million people said they have sought financial advice from a professional, with some admitting to relying on their bank for advice or consulting friends and family.

Over a third of those surveyed said they expected to work past the age of 65 with some admitting that they’ll happily work until they are at least 71 years old, and 9 per cent of this age group plan to be working past their 80th birthday. 

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.

“You cannot start preparing for retirement too soon, whether that means paying into a pension, building a pot of savings or talking to a professional for advice. Those approaching retirement should act now and carefully review their finances taking care to choose the best annuity to make their retirement savings work hard for them. Failure to shop around using the Open Market Option could mean a difference of tens of thousands of pounds in lost income through retirement.”

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