17% of Brits trying to spend “every penny” of retirement savings
- 13% looking to make decisions about spending children’s inheritance
- 23% still focusing on growing savings pot in retirement
- Most people (54%) prioritise making sure their savings last throughout retirement
New research by Canada Life has found that almost a fifth of UK adults (17%) who have received financial advice are prioritising making sure they can spend every penny of it in retirement without fear of running out. More than 1 in 10 (13%) will also consider how much of their children’s inheritance they can spend in retirement. However, almost a quarter of respondents (23%) are prioritising building their savings in retirement, a sign that many could be worried about the current suitability of their retirement income.
The most common priority amongst more than half of those who had received advice was making sure their money lasts throughout their retirement (54%). This was followed by ensuring they have a sustainable income (51%) and managing the amount of risk they take with their income (26%).
Sean Christian, MD and Executive Director, Wealth Management Division at Canada Life comments:
“This research shows we as consumers have multiple priorities for our retirement funds and one size clearly doesn’t suit all. The desire to ensure our savings last as long as we do naturally becomes important. But planning your finances and balancing the need to enjoy what you have without fear of running out of retirement funds is always going to be a tricky balancing act.
“Establishing a close relationship with a financial adviser will help those approaching and in retirement to feel confident about how their income will last. This certainty, combined with the flexibility to adapt your plans in confidence as life and financial needs change during your retirement journey is crucial. Having the right product solutions available which are flexible enough to adapt to any change in circumstances, is also key. Blended pension products that combine guaranteed annuity income with the ability to draw down are great solutions in achieving this level of flexibility.”
Article by Canada Life