More people spend a year or more researching holidays and hobbies for their retirement, while many spend less than an hour working out if they have enough pension income for their later years.
Around one in five spend a huge amount of time dreaming about their retirement, while one in eight spend minutes making sure they have enough cash to live comfortably once they give up work, according to research by financial firm Legal and General.
The result is, says the study, 14% of retirees regret not spending more time on their finances rather than their daydreams.
Although one in eight confessed spending less than an hour thinking about their retirement money, many more spent less than three months – and only 16% planned their finances for a year or more.
When asked, 15% trusted their pension arrangements to their employer, but only 10% spoke to a financial adviser.
Upset about pension income
Nearly a third (30%) of over 55s admitted they were upset about how much money they had in retirement, while only 38% agreed they were satisfied with their retirement income.
Time Spent on Retirement Income Planning | ||
---|---|---|
TIME | % | |
Less than an hour | 12% | |
1 week or less | 33% | |
1 month or less | 43% | |
3 months or less | 49% | |
A year or over | 16% | |
Source: Legal & General |
The survey also revealed how retirement savers intend to spend their retirement:
- Around half are looking forward to holidays and travel
- 18% are planning to spend more time on hobbies
- 17% fancy spending their time on DIY
More time spent daydreaming
Tim Gosden, of Legal & General said: “People seem to spend more time daydreaming about what they are going to do when they retire rather than thinking about how they are going to pay for it.
“With many people approaching retirement now expected to live to their 90s and even older, the amount of time spent planning finances is woefully inadequate. Instead, they should be thinking how to make the most out of their money and perhaps start to shop around for the best savings and investment deals.”
Gosden explained that taking time to understand investments may be daunting to many, which is why they put off making retirement decisions.
“Many who decide what to do with their retirement income quickly make the wrong choices just because they are speedy and easy. Taking more time can pay real dividends by squeezing more money out of their retirement pots,” he said.