Middle-aged workers need to watch out for the retirement gap, according to a new study.
While two thirds of pensioners are enjoying their retirement, at least half of workers in their 40s and 50s have no financial plans for when they give up work.
The report, by pension giant Aviva, reveals that pensioners are in the main content with their finances and lifestyle, with almost two-thirds admitting they are happier not working.
But those approaching retirement are not so well-prepared, with 55% resigned to working mast pension age compared with 27% of those already retired.
The research looked at several financial and lifestyle factors and found a gulf between how pensioners felt about their lives compared to those still working but approaching retirement.
Pensioners who plan
Pensioners felt:
- They have more control of their lives (39% v 17%)
- More fulfilled in life (55% v 30%)
- Happier with their finances (55% v 30%)
- Healthier (53% v 50%)
- Content with time they spend with children and grandchildren (75% v 62%)
- Satisfied with their work/life balance if they still have a job (78% v 44%)
“The report shows a clear link between those who plan when they will give up work and the likelihood they will have a more content retirement,” said a spokesman for the firm.
“The main objective for everyone over 30 seems to be to have no money worries in retirement, but only a third of pensioners who left financial planning until they retired achieved this, compared with three quarters who started saving much earlier.”
Last golden generation
The report argues that workers who do not plan early enough for retirement score lower not only in their feelings about their finances, but generally about the health and lifestyle once they stop working.
Half of workers in their 50s and 54% in their 40s admitted they had done nothing to start planning for retirement.
Less than a fifth have spoken to a financial adviser, drafted a retirement plan or even researched some ideas about what to do online.
“It’s good to see a happy retirement is achievable for many, but we could be seeing a golden generation with the money to enjoy a comfortable retirement that we may never see again,” said the spokesman.
Read the full Aviva Voice of Retirement Report (PDF download)
