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Many 'struggle to fund retirement'

Nearly half of older people see retirement as an exciting new stage of their life but many will struggle to fund the lifestyle they want, a survey suggested today.

Around 43% of people over 55 see retirement as a chance for new opportunities and experiences, with 23% saying they would like to travel, according to insurer Aviva. More than half facing retirement earning between £20,000 and £30,000 have saved less than £30,000 towards their pension.

A lump sum of £30,000 would translate into a retirement income of just £165 a month if the money was used to buy an annuity. But despite the low level of income this sum would produce, 23% of people who have saved less than £30,000 expected to have a comfortable retirement.

Clive Bolton, from Aviva, said babyboomers had enjoyed rising house prices and final salary pension schemes, but that many could struggle to fund their retirement.

He said: "People should think about how they want to spend their days, and how much this will cost."