Retirement Heralds A New Dawn Of Contentment

Stopping work is not about slowing down but the dawn of a new age of excitement for thousands of new retirees.

Half of all retirees regard their golden years as the best time of their life which gives them the time to learn new skills, travel and gain new experiences.

A fifth have worked hard to learn these skills, with 55% devoting more time to hobbies

Pension freedoms have given 46% the money to travel to places they would never normally dream of visiting.

The most popular destinations are the Caribbean (18%), Australia (15%) and cruises (23%).

Working past retirement

Two-thirds of those who have retired since the advent of pension freedoms in April 2015 say stopping work has opened the door on new opportunities for them.

The study, by life and pensions provider LV=, also reveals that although many approaching retirement feel they may have to keep their jobs past their expected retirement age.

On average, those aged between 45 and 65 feel they will have to work an extra 50 months before they can afford to retire.

One in 10 expect to work at least 10 years past their planned retirement age, and this doubles to 19% for the 34 to 44-year-old age group.

JohnPerks, Managing Director of Life and Pensions at LV= explained this could be down to failing to make financial plans as 62% of 35 to 44-year-olds don’tknow how much is in their pension pot and, of those who do, two thirds (66%) have less than £50,000.

Pension freedom is just a start

“This is a new age of retirement. With the introduction of pension freedoms, people have more flexibility to take their money as they want and spend it when they want, and there is clearly an appetite for this,2 he said.

“However, with this new-found freedom, it is more important than ever for people to understand their options and how they can fully prepare to make the most of this new chapter.

“Bringing pension freedoms into force was just the beginning. As is signalled by the current Work and Pensions Select Committee inquiry, more can be done to ensure the changes are working effectively. While the reforms have the potential to provide consumers with an enhanced retirement, there is evidence they aren’t yet working for consumers, with very few engaging with their pensions.

“For pension freedoms to succeed, it’s imperative the government keeps up momentum to ensure consumers are able to get the right outcomes.”

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