With people living longer and costs rising under persistent inflationary pressures, a comfortable retirement may seem increasingly difficult to achieve. However, if you’re worried about your financial security, you’re not alone. Russell Brett explains why it’s never too late to shore up your pension pot.

Inflation may be down to ‘normal’ levels now but it’s no secret that the cost of retirement has sharply shot up. In the last year alone, the cost of retiring has surged by 20%. This is a clear concern for those approaching retirement age, especially with life expectancy rising. 

Living to 100 is now a ‘very real possibility’ for some of us – which puts considerably more strain on our pension pots. With this in mind, how can late savers ensure financial stability in the face of a volatile market?

Just 16% of people are confident they’ll have a comfortable retirement

The cost of affording comfortable retirement for a couple is now £54,000 per year, according to a new report by Nucleus Retirement. While this figure may cause most of us to reluctantly reach for the calculator to crunch those all-important numbers, it’s vital that investors don’t panic. 

Instead, let’s look at the wider picture here. For a basic retirement, a single person could live on £12,800 a year – and a couple for just under £20,000. For a moderately comfortable retirement, this increases to just £23,300 for a single retiree or £34,000 for a couple. This is a much more achievable baseline – and less onerous for many of us.

People with a financial adviser ‘more confident’ of a comfortable retirement

Those savers looking ahead to retirement shouldn’t focus too much on what is happening right now as markets invariably shift – but of course, a shrewd investor doesn’t need to be told this.

The requirements for a pension pot may have risen in recent years, but this has been a result of inflation reaching a 40-year-high in 2022. Since then, the UK has slowly begun to pull itself out of a recession, inflation is falling and prospects for workers and savers alike are on the up. Consumer Price Inflation is now down to just 2.3% – its lowest level in three years and a hair’s width from the Bank of England’s 2% goal.

It may come as no surprise that people with a dedicated financial adviser to guide them through saving and investment decisions, retirement planning and inheritance planning have reported that they are more confident of a comfortable retirement than their non-advised peers – which is great news for our valued clients.

It’s never too late to start saving for retirement

While it is better to start saving early for your retirement to allow longer for your funds to accrue and gain value throughout your career, there is no right and wrong answer. After all, your financial circumstances are unique to you.

Rising life expectancy could mean that some of us live for 20-40 years after hanging up our suit and tie for good, so this adds an important sense of perspective that it’s easy to lose sight of. 

Taking proactive steps now to assess your financial situation and draw up clear goals can shore up your finances and create a more stable future. Remember, this would set you apart from almost half of those over-50s, who lack any clear financial plans for retirement at all!

What are my next steps?

The most prudent next steps would be to speak directly to an expert financial adviser to discuss your finances now and your optimum financial prospects for your anticipated retirement

There are a wealth of ways you can increase your pension pot over the next few years, ranging from increasing your pension contributions to making informed investments to increase your capital, minimise your tax liabilities and safeguard your assets for your well-deserved retirement. There are a wide range of differing investment options available across a spectrum of risk – which you can explore more about here.

Get in touch with our team of specialist financial advisers today to explore the opportunities open to you to secure a comfortable retirement.