Almost half (49%) of adults in their fifties say they have not done anything to start planning for their retirement, rising to 54% among people in their forties.
Just 32% of people approaching retirement have done their own financial planning research online or plan to do so. Only 29% have spoken to a financial adviser or plan to do so, and just 17% have made a full financial plan or will do so before they retire.
Conversely, seven in ten (71%) of today’s retirees started planning their retirement in advance, including 48% who started planning a long time before they retired.
Additionally, fewer than half of future retirees plan to leave work behind them. While 73% of today’s retirees had no plans to do paid or unpaid work once they retired, just 45% of people who are not yet retired can say the same.
Among retirees who still do paid or unpaid work, only 23% feel money is a primary motive, making it less important for them than feeling satisfied or fulfilled (48%), having new challenges or experiences (41%) or having a sense of importance or role to play (34%).
However, among people who are yet to retire and plan to work during their retirement, money is by far the most common driver with 65% expecting to work for this reason.
Rodney Prezeau, Managing Director, Consumer Platform, Aviva UK Life, said:
“It may be no surprise that many people leave their retirement planning to chance, but it is a growing concern when you consider that final salary pensions are on the path to extinction, the Default Retirement Age has expired, and high rates of home ownership and house price growth are far from guaranteed in future."
