An increasing number of people over 50 are unwilling to take any financial risk with their pension savings, research from Retirement Advantage shows.
In a study of 1,003 over-50s who had yet to retire, 39% said they wouldn’t take any financial risk with their pension savings – up from 26% last year.
The proportion of retirement savers who would take a reasonable amount of risk for a good chance of a favourable return also decreased from 28% to 17% over the same period.
Almost half (45%) said they value certainty of income as their top priority from their retirement income.
Andrew Tully, pensions technical director at Retirement Advantage, believes this shift in attitudes is a result of recent market volatility, which has made pension savers more averse to risk.
However, with 43% of over-50s saying they don’t feel adequately prepared for retirement, uncertainty is still an issue for many savers.
“Our research paints a picture of the over-50s being ill-prepared but wanting to take risk off the table when looking at their finances.”
“For the many over-50s who now say they wouldn’t take any financial risk at all, advice can help them understand what danger these market movements actually pose to their savings, and how to mitigate it.”