SIPP pensioners are the most confident in a comfortable retirement

Workers with a self-invested personal pension (Sipp) are the most confident their savings will pay for their retirement, research shows.

Around 20 per cent of the over-55s have a Sipp, according to behavioural finance firm Oxford Risk.

This group is the most comfortable that their pension will keep them comfortable in retirement.

But those approaching retirement with other forms of pension are far less confident their savings will be enough.

Oxford Risk found that half of the over-55s are worried their pensions will not last until they die.

Around a quarter think they have saved enough for their retirement, 5 per cent have no pension at all and the rest are unsure.

Around one in ten (12 per cent) of pension savers think they will have to rely on their children to help fund their retirement. But 67 per cent were not concerned about this, while 21 per cent did not know.

The Oxford Risk study found there was a high level of worry among pension savers, even though a third of those surveyed had a final salary pension.

Final salary or defined benefit pensions provide a guaranteed yearly income from retirement until death, but are now almost non-existent outside the public sector.

Within the private sector most final salary pensions are confined to older workers from the early stages of their working lives and are unlikely to fund retirement by themselves.

Around half of those surveyed had a less generous defined contribution pension, which invests payments from both worker and employer.

Most retirees keep investing their defined contribution pension pot throughout retirement, with their money subject to stock market risks.

Almost a third (31 per cent) of retirees were comfortable about their pension being invested after retirement.

However, 34 per cent were unhappy about it and another 35 per cent were unsure.

The majority (70 per cent) of the over-55s said they will get a state pension, which currently pays £11,500 a year at its maximum rate.

Oxford Risk said that 86 per cent of pension savers said the state pension alone would not be enough to fund a retirement.

Dr Greg B Davies, head of behavioural finance at Oxford Risk, said: “People approaching retirement face a series of critical decisions that will shape their lifelong financial wellbeing, and it’s clear that many feel confused and uncertain about their options.

“The biggest concern for many is ensuring their savings will last throughout their retirement.”