New research by Zurich Insurance has shown that people in the UK are not retiring at the expected age, primarily because they have not planned their finances adequately.
Almost two thirds of Brits at retirement age are thinking of remaining at work, with nearly a third also expecting to have to work as they need the money. Another third though are doing it simply to stay active, in both mind and body, which shows how society and lifestyle has changed said a Zurich Insurance spokesman.
There are so many financial pressures in modern society meaning that retirement costs more than ever. This is a realisation that some people are coming to only now said Zurich Insurance, showing how important good pension planning is.
A study of the retirement market by Saga Insurance has shown that equity release schemes are being used by many people to help boost finances in retirement, helping them do the things they want to do with their time.
Contrasting with a more conservative view a few years ago, around 88 percent of those surveyed by Saga Insurance, now feel equity release is a good idea. In the past the more common view was that the home should be left to children as part of the inheritance.
With nearly 80 percent of those aged 60 and over having paid off their mortgages there is certainly a substantial amount of money available that is tied up in property. The equity release option frees up this money to provide a more pleasant lifestyle.
According to the Prudential retired people have substantial assets and savings although they are not maximising them to aid their standard of living.
On average retired couples have almost GBP270,000 in assets and savings whilst single pensioners have half this amount. However, even though they have these large funds at their disposal, less than 20 percent of them have sought professional financial advice. A Prudential representative was amazed at these findings, feeling that pensioners were missing out on perhaps thousand of pounds extra by better using their money.
Even ignoring the value that people have in their homes a retired couple still has around GBP135,000 in accessible funds. This money should be made to work harder said the man from the Prudential and deliver a better standard of living.
