Over-55s 'are neglecting to plan for retirement'

Over-55s could face a cash-strapped retirement unless they take action to plan their finances carefully.

This is the warning from Aviva after its Real Retirement Report found that 37 per cent of people in this age group have yet to make any concrete plans to cover their spending in later life.

It is at age 48 when people start to think about their retirement income, but the typical person does not do anything about it until they reach 52.

Some 47 per cent blamed a lack of money for this, while 19 per cent said family commitments had distracted them and eight per cent claimed they are just too busy to think about it.

However, with 'grey inflation' having risen to slash the average savings pot by 27 per cent in a year and income for over-55s falling, it could be vital to start retirement planning sooner rather than later.

Aviva's Clive Bolton said: "Everyone's financial circumstances have been affected by the recent economic downturn, but it is crucial that people still plan for the long term."

Earlier this year, the Pensions Advisory Service's Tony Attubato likened not joining a pension planning scheme to giving up part of your pay.

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