More than half (51%) of over-55s are worried about running out of money and confused about their retirement income options, new research by Oxford Risk has indicated.

The group’s study suggested that 12% of over-55s are also worried that they might have to depend on their children for financial support in retirement.

Oxford Risk’s findings were based on a study among 1,011 UK adults over the age of 55 and found that just 27% of respondents were not worried about running out of money in retirement.

The study suggested that over-55s have been waking up to the financial challenges of retirement, with 86% believing it is important to have additional sources of income to fund their desired retirement in addition to the state pension.

However, Oxford Risk said its research had highlighted “widespread confusion” among individuals around how to take their retirement income.

“People approaching retirement face a series of critical decisions that will shape their lifelong financial wellbeing, and it’s clear that many feel confused and uncertain about their options,” said head of behavioural finance at Oxford Risk, Greg Davies.

“The biggest concern for many is ensuring their savings will last throughout their retirement. Personalised financial planning is essential to help individuals feel confident and comfortable with their choices.

“For advisers, the challenge lies in consistently providing the right answers for each investor’s unique needs – a task that becomes increasingly difficult without the right technology.”

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