* 61% expect to either carry on working in some capacity after
they reach retirement age or pursue further education or charity work
* 42% have no clear idea what income they will have in retirement
* 87% want some form of guaranteed income in retirement
* 22% fear running out of money in retirement.
AEGON research, released today, reveals a significant shift
in the way 50 to 65 year-olds are viewing retirement, showing how role models
such as Harrison Ford and Madonna are turning the ‘baby boomers’
into a generation of ‘grandad-olescents’.
Less than one in three (29%) says they intend to stop working
when they reach retirement age despite the vast majority believing they would
at least “get by” financially if they were to do so. But are these
expectations grounded in reality and what financial needs will this generation
have in retirement?
AEGON surveyed over 2,000 people between the ages of 50 and
65 to gauge their attitudes towards retirement and to see what sort of financial
provision they have in place. The study shows retirement in the ‘noughties’
is becoming a second adolescence, and is more likely to include flexible working
or a new career, than a carriage clock and a pair of slippers.
The survey reveals that 61% expect to carry on working in some
capacity after they reach retirement age or pursue further education or charity
work - and, for most, not because they have to. More than one in ten (11%) said
‘love of the job’ made them want to stay in the work force while
14% argued that they were simply ‘too young’ to retire. 12% said
they would like to try out a completely different career in their retirement.
Thanks to exceptional social and economic factors, ‘baby
boomers’ should be in a better position financially to enjoy retirement
than any previous generation. In fact, 42% think they will be better off than
their parents in retirement.
However the report highlights a significant knowledge gap when
it comes to planning, as 42% of respondents have no clear idea about how much
income they will have in retirement. 44% expected to receive an income less
than £15,000 a year and only 14% thought their pension savings would produce
more than £15,000 a year.
Interestingly, 33% are relying on their pension alone, with
no other savings or investments. While these figures wouldn’t seem to
indicate a comfortable retirement, 86% say they would at least “get by”
financially if they were to stop working at retirement age with only 14% saying
they would struggle to cope financially. This may be because 47% of respondents
don’t expect to have a mortgage or other outstanding debts at retirement.
Perhaps understandably in these times of rising prices and falling
stockmarkets, securing a guaranteed income during retirement is at the top of
the wish list, with 87% of respondents saying this is most important to them.
Running out of money is a concern for one in five people (22%) questioned.
Rachel Vahey, head of pensions development, says:
“Retirement isn’t the abrupt cliff edge it once
was and, for many of today’s ‘baby boomers’, retirement age
marks a new and exciting chapter of their lives. But if you want to make adventurous
life choices and have a more flexible approach to retirement you have to know
what income you’re on track to receive and plan carefully.
“Today’s retirees have to deal with the fact that
people are living longer and stockmarkets are more volatile. Running out of
money is a big fear factor and many people want the security of a guaranteed
income. The good news is there are more products and solutions available now
to complement people’s changing lifestyles. So making the right choices
is more important than ever.”
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