Millions of UK retirees don’t have enough in emergency savings

Almost half (46%) of retirees across the UK don’t have enough money in emergency savings, according to new research by Focaldata.

Those aged 65 and over are most likely to describe themselves in good or excellent financial shape at 49%, which compared to 33% overall.

Statistics from a national representative survey of 10,030 UK adults, carried out by Focaldata in June, revealed that 21% of retirees think they have plenty of money set aside for emergencies, but actually fall short.

The findings also showed that 37% of people often worry about their lack of savings, falling to 17% among those aged 65 and over.

Commenting on the findings, Hargreaves Lansdown personal finance analyst, Sarah Coles, said: “Retirees are far more vulnerable than they think. Almost half don’t have enough savings set aside for emergencies, and more than one in five think they’re pretty resilient, and that they have plenty of savings, when in fact their safety net is nowhere near big enough.

“It’s easy to see why they’re more confident about their resilience than their working age counterparts. They’re more likely to have money set aside for emergencies, and they’re less likely to worry about a lack of savings. Many have also fared better financially during the crisis, especially those on a guaranteed income.

“However, this doesn’t mean they’re in the clear, because many of them don’t realise quite how much of a safety net they need at this stage in life, so almost half don’t have enough set aside for emergencies. Many fall horribly short, with one in 12 (8%) able to cover essential expenses for less than a month from savings, and another one in six (16%) able to cover one to three months’ worth.”

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