Our latest research into the attitudes of the 55-75-year-old cohort has shone a clear light on a worrying lack of preparation for retirement that is impacting those reaching retirement age.
Our Great Retirement Study demonstrates that there is no playbook for how to approach retirement as flexi-retirement, ill health and a lack of DB pensions lead to broadening inequalities in the at-retirement generation – those with choice, and those without.
Confidence in retirement
While pensions are the bedrock of confidence in those yet to retire, there’s nothing to prove that confidence is well placed. The Study found that 30% feel not at all or not very confident compared to 18% who feel very or extremely confident that they will be able to live throughout their retirement with a lifestyle they consider comfortable. 1 in 3 expect the state pension to contribute most to their retirement and half will be reliant, to some extent, on cash.
We surveyed more than 2,000 55-75 year olds, and found a worrying reliance on cash and state pension. The research also demonstrates unrealistic expectations of everyday income and expenditure in those yet to retire. The mean expectation of outgoings five years into retirement was 92% of pre-retirement outgoings, while the mean expectation of income five years into retirement was 78% of pre-retirement outgoings – an income not even those on the best DB pension can expect to achieve.
Is advice the answer?
Use of advice increases to a peak in the 60-64 age bracket – one in four of whom take advice – then falls back down to just 17% in the 70-75-year-old age group. This suggests that advice is taken on a transactional basis, specifically around the process of drawing pensions, rather than ongoing retirement or financial planning.
One in two people said they would be prepared to pay for a one-off professional review of their finances to help in their retirement planning. The average cost people were prepared to pay was £213. IFAs were the most trusted source of financial advice, with 26% of people choosing IFAs, over different Financial Services institutions, their workplace, or online sources of information.
“We’ve found that retirement is very much seen as a process, and not a one-off event. As you look to provide solutions and provision to the next generation of retirees, you need to work out how you can be part of the conversation during the transition from working life to retired life, and consider how your customer’s health plays into their decision making. “Help people understand what pensions they have, and what that means in terms of income on a day-to-day, or month-by-month basis. Those who took advice felt more empowered and confident in their retirement plans. We need to extend this sense of support and preparedness to a wider cohort who want and need professional support but are sceptical of the value of advice”
Use our findings to engage this cohort
Our 30-page insight report offers you an in-depth look at our findings, and the six-persona segmentation output. Find out more about how the modern generation of retirees plan their transition from work and the finances they should have in place to support that.
Please get in touch if you would like to purchase the report, or you can buy online today.
As well as the insight report, we can run a three-hour workshop with your firm. The workshop (£3,500+VAT) aims to present the findings to you, including more detail on the segmentation and give you an overview of how your business can use the findings to its advantage.
Our segments have been mapped and modelled and are accessible via interactive, real-time dashboards that can demonstrate a segment’s media, brand and influencer affinity.
We can map your customer book to the segments and tell you more about who they are, what is most likely to engage them, and where in the country they are based.
Please use the form below to find out more.
