One in 10 over 55s are so depressed over their retirement prospects that they intend to rely on cash support from their family to boost their pensions.
The revelation comes from research by financial firm Axa Wealth looking at how the over 55s are planning their finances for when they give up work.
More than three-quarters expect to rely on the state pension, says the study.
While only 29% have factored returns from a private pension into their retirement plan.
Axa suggests many over 55s could benefit from independent financial advice looking at generating income from assets like property, savings and investments held by their families.
End of property pensions
Raising cash from property, mainly by downsizing the family home to release capital, is becoming less of a factor in pension planning as property prices have stalled at pre-2007 prices despite recent rises in value.
Property is dismissed by many over 55s as a pension asset as they often have high interest-only repayment mortgages hanging over from before the credit crisis that devalues home prices.
The research disclosed only 9% of over 55s consider property as an important part of their retirement strategy.
Nick Elphick, of, AXA Wealth, said: “Funding retirement is too important to ignore. The survey has already revealed the over 55s are relying on their children to return home to help with their finances.
“This is in part due to the difficulty in raising deposits for children wanting to buy their own home.
Inflation eats into savings
“Another concern is the flat rate pension coming in during 2016 is likely to see many pensioners receiving less money than they do under the current system, reducing their retirement spending power by even more.”
Other recent retirement surveys have also warned that those approaching retirement are relying too much on the state pension and property to pay their way in their later years.
Another factor widely ignored by the over 55s is the effect inflation has on their income.
Although the Office of National Statistics reports inflation has finally fallen in line with Bank of England targets by resting at 2% that is the consumer price index figure which does not consider housing costs.
When these are added in, the retail price index shows the current inflation rate is 2.7%.
The problem for the over 55s and retirees is they have a fixed income but need an extra 3% a year just to keep pace with the cost of living, and they just do not have the means to increase their income at this rate.
