Retirees fear savings will dry up

More than 1 in 3 (35%) retirees fear their retirement savings will run out before they die, according to research from SunLife. 

The insurance firm polled 50,000 people over the age of 50 and found a further 28% are concerned about money.  

Ian Atkinson, director of marketing at SunLife, said:

“Our research shows the vast majority of retired people (85%) think they retired too early; while there could be many reasons why they feel this way, our research suggests money is the main issue as a third are now concerned their money won’t last as long as them.”

47% of over-50s still in employment said they don’t have enough money in their pensions to cover retirement, while 38% said their primary concern is money. 

SunLife claims these fears have sparked an upturn in the amount of employed over-50s who are seeking to make money outside of work. 

Atkinson added: 

“Our research shows millions of retirees are currently earning extra cash.

“People aged 50+ do not see themselves as old. Turning 50 has given them the push they needed to try something new, so there are plenty of things retirees can do if they are concerned about their finances.”

Ways to boost your savings

Almost 2 in 5 retirees earn money from outside their pensions, savings or investments. 

SunLife’s research shows over-50s are earning extra cash by:

  • selling unwanted items on eBay 
  • renting out property or spare rooms
  • private tutoring 
  • exam invigilating 
  • working in election offices
  • making crafts and cakes to sell. 

If none of those options appeal, you could bring in extra revenue by starting a new business, downsizing, remaining in work or by offering desirable skills and experience on a freelance basis. 

Tax implications

In the 2017/18 tax year, you can earn £11,500 before you have to pay tax. In addition, the personal allowance has been boosted by 2 income tax breaks for micro-entrepreneurs. 

The property and trading allowance enables you to earn £1,000 from property and the same amount from selling goods without paying income tax. 

Contact us to discuss your retirement options.