Running out of money is top concern for retirement

26 February 2025

A new report has highlighted that the biggest concern for those approaching retirement is the fear of running out of money. 

BNY Investments and NextWealth’s latest research, “Retirement Advice in the UK: Time for Change?”, reveals that half of the consumers surveyed (50%) identified this as their top worry. The issues of inflation and the rising cost of living (48%) and investment risk (38%) were also significant concerns.

The research, which surveyed 208 financial advisers and 254 consumers aged 55 or over with at least £100,000 in investable assets, explored the key anxieties expressed by clients when planning their retirement finances. The findings stress the importance to many people of secure retirement income solutions that provide certainty in later life.

Annuities bring certainty to retirement income

With concerns about financial stability in later life at the forefront, the findings suggest that many retirees may benefit from considering annuities as part of their retirement strategy. 

Annuities play a crucial role in addressing these fears by offering a guaranteed income for life, removing the uncertainty of managing retirement funds. Unlike drawdown investments, an annuity provides a fixed income stream, ensuring retirees do not outlive their savings. 

Additionally, because annuities are not tied to the stock market or other investments, they eliminate exposure to market volatility. This makes them an investment risk-free retirement income option.

For those worried about inflation and the rising cost of living, an annuity with inflation protection may offer a solution. These annuities are designed to increase payouts each year in line with inflation, helping to maintain purchasing power over time. 

While inflation-proofed annuities typically start with a lower initial income than level annuities, they provide long-term financial security in an unpredictable economic climate.

Helping you make an informed choice

Speaking to one of our Annuity Specialists can help you to explore your options, compare the best available annuity rates and make an informed decision about the right income solution for your needs.

Our Annuity Specialists are here to explain everything to you, giving you as long as you need to explore your options. Speak to our friendly team today by calling 0800 652 1316 or request a free call back here.

Source

Running out of money is top retirement concern: New research sheds light on how advisers are reacting to the altering retirement advice landscape. CityWire. Accessed 20 February 2025.