Research published in Retirement Advantage’s latest Retirement Sentiment Index shows that greater numbers are opting for safety than flexibility following June’s referendum.
When asked about retirement income, over 50s increasingly rank certainty as their top priority since the vote to leave the EU (46%, +3%), while the desire for flexibility has waned in equal measure (31%, -3%)1. Meanwhile, instant access (14%) and income growth (9%) continue to be seen as lesser, complementary income priorities. The research compares views pre and post the Brexit result.
Andrew Tully, pensions technical director at Retirement Advantage, said: "The over 50s clearly want to take advantage of the pension reforms. However, following the vote to leave the EU, we find they are prioritising safety amid turbulence in the wider economic and political environment.
While people still want to have some flexibility to cope with whatever the future may bring, it doesn’t always translate into practice. Whether it’s a natural reaction to economic fear, or simply people not looking for financial advice, we are seeing fewer over 50s realise their needs for financial flexibility in retirement."
The new research shines a light on broader attitudes to retirement among over 50s, showing that the desire for flexibility is linked to a desire to enjoy the right lifestyle. The proportion stating that they are concerned about having enough money to do the things they’d like to in retirement (48%) is higher than the proportion concerned about their health (37%). Similarly, over 50s show more concern about having not saved enough to provide a comfortable income in retirement (33%, +1%) than the cost of living (30%, +2%).
The report also highlights that over 50s are now more likely to use the internet (43%) to access financial information, rather than planning to consult a professional financial adviser (38%, -5%).
Andrew Tully said: "A clearer picture is emerging of how over 50s approach financial decisions. They’re now looking to do their own online research ahead of getting professional financial advice. But the recent change in pensions, coupled with the wider economic uncertainty, means professional advice is now arguably more important than ever.
We know over 50s don’t just want enough to get by in retirement, they want enough to make their later years fun and fulfilling. Getting professional financial advice is vital to enabling people to achieve the best outcomes from the pension freedoms and get the right mix of certainty and flexibility."
