For 20 years, pensions provider Scottish Widows have published their annual retirement report. I’ve read every edition with my various ‘hats’ on, from former financial advisor to current retirement coach.
This year, the report contacted 6,000 people in order to:
“Understand their hopes and aspirations in respect of their retirement, to understand the plans that they have made, and to also understand their actual expectations.”
It’s not always comfortable reading. The cost of living has eaten into income, eroded saving goals and lowered optimism about retirement. As a result:
“While the average age that people would like to retire remains at 62, 54% expect to retire later than they would like, on average by 7 years.”
That means many expect to be working until they are 69, three years beyond the age they can claim their State Pension. 17% expected to never be able to retire.
Equally, since the first report 20 years ago, the life expectancy has increased by three years for men and two years for women. So “pension pots must stretch further”.
An enjoyable retirement now
First, the good news. 84% people who are retired now are enjoying their retirement and the freedoms it brings. Only 13% say they don’t find it enjoyable or fulfilling.
Current retirees spend their time on;
- Relaxing (61%)
- Hobbies and activities (57%)
- Time with family (48%)
- Travel (36%)
- Voluntary work (21%)
- Supporting working family members (19%)
- Paid work (3%)
I am pleased to see that all but the top activity (relaxing) ticks boxes in my checklist for a fulfilling and meaningful retirement. Of course, retirement is about relaxing, but once you are retired, and the pressures of work are off, you usually need to have at least something to relax from or after.
“Relaxing” is a broad term and I suspect if you drilled down into that, relaxing would actually involve doing something. It could be reading a book, looking at the birds in the garden, or watching the world go by over a coffee at the local beauty spot. It could be walking the dog, binge watching box sets, having a lunch with good friends – and then enjoying an afternoon snooze!
Concerns about retiring in the future
For those who are yet to retire, the picture looks less rosy. This group are seriously concerned about how they will fund their retirement. Again, there is good news here in that these future retirees should have the minimum lifestyle requirements covered by the time they retire.
However, that still leaves 38% with insufficient provision, and more concerning, almost 50% of people approaching retirement have done nothing to address their retirement concerns.
This is where I know I can help. I founded Panthera LIFE to help people get the most from their retirement by making a plan, only one part of which is financial. In my experience, a lot of people aged 55+ already have sufficient to retire on, and just don’t realise it. Others may know they are at or close to their financial retirement goals, but have no idea what they will actually do day to day, week to week.
That’s why retirement planning isn’t primarily about costs and figures. It’s much more a game plan for the next 30+ years of your life.( If you’ve read enough already and want to talk to me pronto, just book an initial free 30-minute Discovery session and let’s get the ball rolling.)
Making the most of your skills
Retirement in the future will look different to the current tradition of retirement, namely to ‘stop work’ and enjoy endless 7-day weekends. Many conversations I have with pending and existing retirees include them wanting to do more and give back.
Key to this idea is sharing your decades of knowledge and skills. How to do that is up to you. You could:
- Switch and start a new business that is on your terms and fits into your ideal life. This could generate enough income to cover some of your spending.
- You can retire from your existing 5 days a week, 9-5 job and start afresh in a new job that suits your lifestyle.
So, is this being retired? Not in the traditional sense. However, it IS stepping away from the rat-race and career ladder to finally do something different with your knowledge and skills. These can be an invaluable asset in your 50’s,60’s and 70’s, and bring in additional income to boost your overall pension pot value.
Are you ready to retire?
If you recognise that you are not doing enough to prepare yourself for retirement, you are not alone.
According to the Sottish Widows report, only 34% of those surveyed thought they were making adequate preparation for retirement. Of the rest:
- 33% had done nothing about it
- 28% had not even thought about it
- 10% didn’t know how they would spend it
That’s 38% in total who simply have no idea what they will do when they retire – and that is what worries me most.
Your retirement game plan
I have seen time and time again how having a retirement game plan in place turns uncertainty and worry into purpose, fulfilment, enjoyment and, yes, relaxation.
It provides a reason to get up in the morning, and a sense of achievement at the end of the day. It enables you to retire the way you want to, do what you want to, when you want to and afford it all too.
And it is not only possible but achievable and available to start right now, wherever you are in your retirement timeline. Please do call me and book your initial Discovery session. There’s no obligation, no fee, no ‘selling’. Just you and I, talking about your plans for retirement, addressing the questions you have, and see how we can work together moving forward.
Sound like a plan?
To book your Discovery meeting with me, Paul Hammond:
