Apparently, more than four in ten retirees expect to receive an income of less than £15,000 a year when they stop working, a pension annuity survey suggests. This does tend to answer the question, no…your pension annuity income might not be enough when you retire. Research conducted on behalf of Aegon found 44% expect under £15,000 income per annum while only 14% expect their pension savings alone to produce more than £15,000 a year. Aegon also says only one in three intends to stop working in retirement.
In addition, 87% of those questioned want some form of guaranteed income in retirement, like a guaranteed pension annuity, while 22% fear running out of money after they finish working.
More than 2,100 people were surveyed, highlighting the dawn of the age of the grandad-olescents, retirees that want to continue to work. More than 60 % expect to either carry on working in some capacity after they reach retirement age or pursue further education or charity work. 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.
Around 30% of retirees are relying on their pension annuity and state pension income alone, with no other savings or investments, the survey suggests, but 86% say they would at least “get by” financially if they were to stop working at retirement age.
Rachel Vahey, from Aegon, 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.”
I thought it was worth repeating Rachel’s quotes in full; very valid.
