A YouGov survey of 6,224 UK adults found that 55 percent fear running out of money in retirement, with 63 percent of those concerned under age 50.
Financial experts have outlined practical steps to address this growing anxiety.
Susan Hope, business development director at Scottish Widows, recommends nine strategies for building a resilient long-term financial plan.
She emphasizes using digital tools to track state pension age and national insurance records via government apps.
Hope advises checking year-by-year national insurance contributions and reviewing employment history to secure credits for illness, unemployment, or caregiving periods.
She highlights the £31 billion in untraced pensions across the UK and urges savers to use the official Pension Tracing Service.
“Make sure the cornerstone of your financial retirement income is covered by the state,” Hope says.
She suggests comparing retirement living standards—minimum, moderate, and comfortable—to estimate needed savings.
Hope also stresses maximizing employer pension matching schemes to leverage compound growth.
“The earlier you start taking advantage of free money from your employer and the investment growth, the better,” she notes.
Savers should evaluate property equity, investments, and pensions collectively for tax efficiency. Hope recommends using benefit calculators from Turn2us and Lloyds Banking Group to identify eligible assistance.
Creating pre- and post-retirement budgets helps prevent overspending. Hope advises using single-view apps that display bank balances alongside retirement funds for a clear financial picture.
Upcoming ISA Rule Changes
Chancellor Rachel Reeves announced significant ISA reforms at the Autumn Budget 2025, effective April 6, 2027.
The annual cash ISA limit for under-65s will drop to £12,000, requiring savers to allocate the remaining £8,000 of the £20,000 allowance into stocks and shares or innovative finance ISAs.
Craig Rickman, personal finance editor at interactive investor, notes that around 15 million ISA accounts were opened in 2023-24, underscoring the broad impact.
The changes aim to drive domestic stock market investment and discourage low-yield cash holdings.
Anti-circumvention rules include a 22 percent tax charge on interest from cash held in non-cash ISAs and a ban on under-65 transfers from stocks to cash ISAs.
Non-cash ISA portfolios entirely in money market funds will be classified as non-qualifying investments, subject to consultation.
Individuals turning 65 before April 5, 2028, maintain full cash ISA capabilities for the 2027-28 tax year.
The full cash allowance applies from the start of the tax year in which the saver turns 65.
Rickman advises savers to understand the new rules to avoid accidental limit breaches and tax penalties.
“Otherwise, you could overshoot the annual limits, end up paying a tax charge, or break eligibility rules,” he says.
