Pension alert as over 50s facing 'poverty' and hefty tax bill - are you impacted?
Pension savings alongside the state pension are considered particularly important in retirement to help older people with costs. Many will take action on the matter decades ahead of their departure from the workforce to ensure they have enough for later life. However, research conducted by Scottish Widows has uncovered a potentially dire situation for those approaching retirement.
The study found over half of people in their 50s now fear running out of money in retirement.
This is partly attributable to this group bearing the brunt of income decreases during the pandemic, as well as job losses.
With financial challenges faced by over 50s, many are making use of the flexibility pension freedoms rules allow and are dipping into their pension pot.
Britons can go into their pension savings from the age of 55, with 383,000 people withdrawing money from their pension in the first three months of 2021 alone – a 10 percent jump on the same period last year.
READ MORE: DWP update: Britons could be owed up to £5,000 in ESA backpayments
