TAKING THE NECESSARY STEPS TOWARDS A FULFILLING RETIREMENT

UK adults aged 50 and above were asked about their retirement dreams and whether they had turned out as planned. They survey revealed various insights into hopes, realities and the importance of preparation [1].

When it comes to retirement priorities, financial security was emphasised by 94% of respondents, as they wanted to maintain their desired lifestyle. Spending quality time with family was important for 90% of participants, while affording necessary care and financing major family events were key priorities for 81% and 73% respectively.

MOST ANTICIPATED RETIREMENT ACTIVITIES

Regarding post-work life, UK adults aged 50 anticipated retirement activities that included travelling or going on holiday (52%), dedicating more time to existing hobbies (38%) and engaging in DIY and renovations (28%).

However, the financial reality didn’t always align with people’s needs. Approximately 41% of respondents stated they needed more money than initially planned, with one in five individuals requiring significantly more. this trend was more prevalent among early retirees aged between 50 to 59, where 53% expressed needing more money than anticipated.

IMPORTANCE OF SEEKING PROFESSIONAL ADVICE

The research also sheds light on pension pots, revealing that the average amount saved for retirement was just over £185,000. However, there were significant variations in retirement savings, with 16% of people retiring without funds in their pension pot. On the other hand, 12% had saved over £500,000, and 5% had accumulated between £700,000 and £899,000.

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[1] Survey of 2,004 individuals aged 50+ commissioned by Legal & General between 14 to 19/04/2023.

A pension is a long-term investment not normally accessible until age 55 (57 from April 2028 unless plan has a protected pension age).

The value of your investments (and any income from them) can go down as well as up, which would have an impact on the level of pension benefits available.

Your pension income could also be affected by the interest rates at the time your take your benefits.