The annual State of Retirement Report has revealed that 68% of those within five years of retirement are more concerned about their financial situation than a year ago, as almost one in five have decreased their retirement savings by £4,104 a year, which equates to a total of £11 billion ‘lost’ in retirement savings.

Just over a quarter of people aged over 50 will be forced to postpone their retirement as the Coalition Government prepares for a period of austerity. Worryingly, despite the economic downturn, over a third of non-retired over 50s are still planning on pinning their hopes of a comfortable retirement on a sustainable economic recovery.

Despite concerns over financial security, only one in five over-50s have consulted an independent financial advisor for retirement planning advice. With an increasing number of options to consider, such as consolidating pension pots, taking an enhanced or fixed–term annuity, and equity release, people could lose out considerably in retirement by not taking professional advice to ensure they make the right choices.