It’s not just about historical annuity rates and 2009 annuity rates with annuities today. No, we have a changing landscape when it comes to annuity rates and retirement lifestyles. Retirees will be looking for a more active romantic life and will be spending more than £2000 a year on going out and enjoying themselves. Sounds unusual, more like the social calendar of a twenty odd year old, but according to a recent study by Aviva (was Norwich Union) these ideals and figures describe the average retirees lifestyle in retirement. Aviva’s Retirement Reality study found that 85% of pensioners see their retirement as a second stage of their life rather than ‘the end’, and 86% of those newly retired have a long list of ambitions to achieve.
Pensioners also reported that their retirement made them more spontaneous (nearly half) and less stressed (again, nearly half). Certainly no concerns about historical annuity rates. Add to these figures the fact that life expectancies are increasing and health in old age is actually improving, and it is clear that the concept of life in retirement has changed somewhat. One expert even suggested that the retirement market is a fun place to be right now. With half a million people or more entering their retirement every year, and with the market set to grow to at least £30bn per year in the next decade, from the current level of about £14bn a year now, there is a lot to concentrate the mind on. From the retirees perspective, to achieve their goals they will have to ensure that the put aside enough for their retirement, otherwise they’ll miss out.
