Retirement means something different for everyone.
For you it might mean more time with the grandchildren or longer holidays. For other people, pursuing hobbies and pastimes you didn’t have time for when you were working, or just the freedom to do what you want, when you want.
New research, from Retirement Advantage, has shown, exactly what those people close to retirement plan to do when they finish work, and some of the results are surprising.
The survey of 1,000 people over the age of 50 found that the top 10 most popular ‘hopes’ for retirement are:
1st: Visit a foreign country (45%)
2nd: Visit a part of the UK never visited before (37%)
3rd: Spend more time with the family (31%)
4th: Spend time in the garden (23%)
5th: Volunteer for a charity (21%)
6th: Spend more time with friends (18%)
7th: Take up a new hobby (17%)
8th: Write a book (8%)
=9th: Study through an online learning course (7%)
=9th: Get a pet (7%)
Paying the bills or going on holiday?
The survey also asked people to rank the most important things to them about their retirement finances.
The results were fascinating and clearly show that most retirees number one concern is simply to get by from day to day.
It is also interesting to note that only 1 in 10 retirees are prioritising leaving an inheritance to their loved ones. Whilst only 1 in 5 people are worried about the ability to pay for long term care should it be needed.
The full list reads as follows:
1st: The ability to pay my bills (70%)
2nd: The ability to go on holidays (57%)
3rd: The ability to start new hobbies or have new experiences (37%)
4th: The ability to pay for long term care (22%)
5th: The ability to help friends/family financially (18%)
6th: The ability to pay off debt (13%)
7th: The ability to leave enough for inheritance (11%)
8th: The ability to invest in my home (11%)
Commenting on the survey, Andrew Tully, pension technical director at Retirement Advantage, said: “When people think about retirement they clearly want to have as active a lifestyle as possible, whether that be through travelling, volunteering for a charity or taking up a new hobby. Curiously, people would rather go on holiday than spend more time with their family or friends.”
“When thinking about their retirement finances, the research finds that the ability to go on holiday (57%) and start new hobbies or have new experiences (37%) are more important to people than paying for long-term care (22%) or leaving enough for an inheritance (11%). However, the need to pay household bills (70%) continues to top the table of financial priorities.”
Time to plan
Planning for retirement is probably more complex than ever.
Pensions Freedom can provide retirees with huge opportunities, as well as pitfalls, whilst at the same time, interest rates are low and stock markets relatively high. Add in the effects of Brexit and there has never been a time when careful planning has been more important.
Furthermore, planning shouldn’t start the day, week or even month before plan to retire. Ideally you should be planning your retirement, and engaging with an independent financial adviser, 5 – 10 years before you plan to finish work. Whilst that may sound like a long time, it really isn’t; it could be as little as 60 pay packets away!
Andrew Tully again: “While it’s great that people approaching retirement want to maximise the enjoyment of their later years, this can only be achieved successfully with a financial plan.”
“Securing an income to pay the bills is the obvious priority, allowing any remaining funds to be used to support the active retirement many people dream of. Combining annuities and drawdown can provide the peace of mind and flexibility to support this lifestyle, and for most people, the right plan starts with the right professional advice.”
We are here to help
If you are planning to retire during the next 10 years or so, we are here to help you make the right choices.
Call Bev or Sarah today on 0115 933 8433 or email firstname.lastname@example.org