The majority (77%) of homeowners over the age of 40 are confident about their current financial situation, according to Canada Life.

But despite their bullish stance on money right now, many are more concerned about their retirement prospects, with 16% saying they don’t feel they will have enough pension savings to fund their plans.

One in five 21% don’t feel they will have enough to fund their aspirations such as home improvements, a holiday or car. And a third (31%) don’t feel they will have enough pension savings to fund their dreams such as regular holidays or a second property.

High savings

Driving the confidence in the financial situation of this group is an increase in savings. Over the last 12 months, over two fifths (42%) of UK homeowners over 40 have saved an average of £2,570 more than usual during the pandemic.

Those in the South East have saved the most, at an average of £3,150 while those in the East of England have saved the least, at £1,915.

Alice Watson, head of marketing, Insurance, Canada Life said: “Covid-19 has divided the nation when it comes to personal finances. Our research shows that many have been fortunate enough to have saved more this year, thanks to lower travel costs and fewer holidays. However, others have been facing financial difficulties, as many people navigate furlough or unemployment.

“It’s encouraging to see so many people remain confident about their current financial situation. However, there is clearly a shift in confidence when it comes to retirement planning. This is where property wealth will play an increasingly important role, as people may be unable to rely solely on their pension income.

“While saving for retirement may seem like a daunting task, considering how different types of wealth can be used during retirement is crucial. Speaking with a financial adviser is a sensible first step, as they can demonstrate how property wealth could be used to meet the needs of homeowners nearing retirement, helping them to reach their retirement goals.”