Global asset manager Schroders has commissioned new research which reveals that just 26% of Britons believe they will be better off than their parents’ generation when they retire.
Almost half (44%) believe that they will be worse off than their parents in retirement, who have been dubbed the golden generation.
The greatest single fear of Britons (79%) considering retirement is a lack of income and having inflation erode their savings, with 5% worried that they might have to sell their homes.
One response to these rising concerns is to increase pensions contributions, something 27% have done over the last 12 months.
Head of Marketing UK Schroders James Rainbow explained that there was a fear amongst many that their standard of living and income would significantly decline in retirement.
Rainbow went on to explain that lower annuity rates, the closure of final salary pension schemes and inflation made many Britons feel that they would be worse off in retirement than their parents.