Large numbers of pension savers do not have a large enough fund to last them past age 85, according to Lincoln Financial Group.
Increasing longevity means most people will now reach this age, and Lincoln says it is vital for retirees to receive professional advice to help them explore their income options.
Lincoln's research found 41% of UK adults are likely to run out of retirement income by the time they reach 85.
Furthermore, 11% do not think they will have enough savings to last them until they are 70, meaning they will have to rely on the state to pay for much of their retirement.
Two thirds of British people expect to live to age 85, and Lincoln says improvements in life expectancy will push these numbers up further.
Simon O'Connor, head of products and marketing at Lincoln, says: "Increasing longevity means that it is more important than ever for people to seek financial advice to work out a retirement plan that will suit their individual circumstances and provide them with an income for life."
O'Connor is encouraged that more than half of the UK population are thinking about their options, with 37% planning to spread their income evenly over their retirement and a further 20% hoping to use their savings sparingly in case they need old-age care,
However, he says there needs to be more awareness of the different income products available in the UK market, particularly those offering solutions for pensioners to beat inflation.
Contact: John Bakie, Tel: 020 7484 9805, e-mail: [email protected]IFAonline
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