New research from Aviva shows that: Almost a fifth (18%) of workers in their 50s and 60s are currently unable to save anything for retirement.

·      Almost a fifth (18%) of workers in their 50s and 60s are currently unable to save anything for retirement

·      60% in their fifties and sixties are yet to ramp up savings habits as they approach retirement.

·      Half (49%) in their fifties and a third (36%) in their sixties have not yet worked out how much money they will need to retire.

According to Aviva’s Real Retirement Report, the ageing workforce is in the throes of a mid-life savings crisis.  Critically, many are unable to save anything for their retirement, as everyday living puts too great a strain on their finances, while millions more are unaware of how much they need to be able to retire. Two in five (43%) of those aged 50-59 are only “occasional” or “absent savers”, while over a third (38%) aged 60-69 fall into the same categories either saving infrequently on an ad-hoc basis with no clear savings goal, or unable to afford to save anything at all.

Clearly a lot of people are NOT using RetireEasy.co.uk to understand the implications of failing to save adequately for their retirement.

Thus the findings also reveal that two thirds (64%) of workers in their fifties are yet to ramp up their pension saving in the run-up to retirement. Similarly, over half (54%) of those in their sixties who are fast approaching or may even have passed the eligible state pension age are yet to increase saving into their retirement fund.

The mid-life savings crisis doesn’t stem just from an inability to save. Millions of older workers also lack a clear picture of how much they will need to save for their retirement, meaning their saving habits are not being informed by the reality of their situation.

Two in five (42%), just over four million older workers have not yet calculated how much money they will need in retirement, including half (49%) of those in their fifties and a third (36%) in their sixties.

While some opt to save more as they reach retirement age, one in ten older workers (10%) use their higher disposable income post-50 to spend more. Many of those who have changed their spending habits have done so to help out younger generations: 10% of older workers say they spend more on their children and less on themselves since turning 50, a figure that rises to 41% among those with financially dependent children or parents.

Are YOU saving enough?

Knowing exactly how much you need to save each year in order to achieve your retirement aspirations is straightforward using the RetireEasyLifePlan. Key in your data and the easy to follow charts will show if your current plans put you on course for a shortfall or surplus. You can also create and save different scenarios to make allowances for life events such as an inheritance, downsizing or funding a family member through college.