Two-thirds (66 per cent) of those retiring in 2021 are at risk of running out of pension savings in their retirement, according to research from Standard Life Aberdeen.

The research, which surveyed 2,000 UK adults who were either due to retire this year or had retired in the past 12 months, published today (April 21), found the class of 2021 planned to spend around £21,000 a year in retirement.

And although this is almost £10,000 less than the average household income of £29,900, many of them do not have an adequate level of savings to maintain this.

Based on this figure, a retiree would need about £390,000 in savings on top of their state pension income for a 30-year retirement.

But the average value of a class of 2021 pot is £366,000 with a third (33 per cent) admitting to having less than £100,000 saved.

John Tait, retirement advice specialist at Standard Life Aberdeen, said: “Vast numbers of those retiring this year risk running out of money in their retirement. Retirement is a marathon, not a sprint, and many could be going into it without sufficient preparation or planning.

“Pension pots are without a doubt the most popular option for funding retirement, but it’s so important that retirees consider any other savings or assets they can use when deciding whether they can afford to retire or not.”

The research also found that more than a third (37 per cent) of those planning to retire this year were worried about not having enough money to last throughout retirement.

Just 39 per cent felt very confident that they’re financially ready to stop working this year, with a third (34 per cent) of women feeling very confident versus two in five (43 per cent) men.

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