Nearly half (48 per cent) of those in affluent households with an annual household income of at least £70,000 (around $107,000) worry about having a high enough post-retirement income to meet their needs, according to Close Brothers Asset Management’s inaugural Trends in Wealth Report: Road to Retirement.

The report reveals that just one third (33 per cent) of those at retirement or looking to retire in the future are unconcerned about funding their retirement. However, heightened concerns have not yet overcome planning inactivity for many. One in seven affluent employees has yet to make any pension provision. And, on average, these workers do not anticipate beginning to make financial plans for retirement until they are 41 years old. With the average first-time buyer age rising to 37, and living costs such as childcare climbing, setting aside money for retirement is still a costly afterthought for many, the firm said.

Close Brothers said that the state pension is not an irrelevance to the affluent, but it will not support their anticipated retirement lifestyles by itself. Just 3 per cent of respondents are confident that it will provide a high enough income to fund their retirement goals. Equally worrying is the lack of awareness over the potential cost of long-term care in retirement. Just 28 per cent of respondents have considered long-term care costs, and awareness of the issue decreases as respondents get younger.

The report showed that retirement income concerns are increasing the likelihood of even affluent retirees working in some capacity. The number of over 65s in work has already reached 1 million, and these are set to grow in number even further. More than half of employees (52 per cent) who want to retire at some point feel they will need to continue working in some form.

“Even affluent individuals are starting to fret about their prospective income in retirement. Despite the high level of concern, the number of people who are able and willing to plan and save for their retirement is too low. The increasing cost of living, combined with the impact of the rising cost of home ownership is seeing planning for later life fall down the agenda, but relying on ‘something to turn up’ is a dangerous approach,” said Andrew Fay, head of wealth management at Close Brothers Asset Management.

Meanwhile, London has the greatest tension between concerns over future retirement income and proactive planning, with some 72 per cent of London respondents concerned that their future retirement income will be insufficient for their needs. Despite this, employees in London are less able to make provision. As the high cost of accommodation and greater cost of living eat into income, just 64 per cent of those who have not retired have made plans for retirement – the lowest level in the country. In contrast, 80 per cent of affluent workers in Northern Ireland have made plans, the firm said.

The Close Brothers report was conducted  by YouGov between 23 and 30 May 2013. The survey questions were asked of a sample of over 1,000 adults in the UK with gross household incomes of £70,000 or more to establish the opinion of affluent sections of society. This survey was conducted online.