17th November 2017
Workers aged over 50 are relying on downsizing, an inheritance or even a lottery jackpot to be able to afford a comfortable retirement, a study shows.
Aviva surveyed 3,327 over-50s and found 25% hope to profit from downsizing, while a similar number (24%) are relying on an inheritance to top-up their pension pot.
Despite odds of 139,838,160/1 on scooping the EuroMillions jackpot and 45,057,474/1 on winning the National Lottery, 13% are banking on a lottery windfall to provide a comfortable retirement.
Respondents expect to reach their peak earning power between the ages of 51 and 57, but only 34% will use this time of their life to save more towards their pension.
Instead, 21% of over-50s aim to spend the extra income on big purchases, such as an extension or new kitchen, while 20% believe enjoying their lives is a bigger priority than saving.
Lindsey Rix, managing director of savings and retirement at Aviva, said:
"As financial pressures take their toll on older workers, many are postponing retirement planning and are instead relying on factors other than savings to afford a comfortable retirement.
"Even options that might seem guaranteed, such as making a profit from selling a home, could pose a challenge if economic or market conditions change.
"Although older workers have multiple demands on their income, understanding what needs to be saved to afford a good standard of living in retirement can make a big difference."
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