Third of over-55s spend more time choosing a car than preparing for retirement
More than half of people over the age of 55 see financial security as a top priority in retirement, yet a third allocate more time to buying a new car, finds Legal & General (L&G) research.
Just around a third of retirees (32%) spend less than a week to make a decision on their pension income arrangements, compared to 40% who said they spend over a week to purchase a new car.
This is despite more than half (52%) saying financial security was their main priority for retirement income, with just 30% saying they had never worried about their money out early.
The findings, revealed today (24 September) in L&G's Price of Freedom research, come from a study of more than 2,000 members over the age of 55, and also showed around three in five (58%) members who had yet to retire had not researched options for accessing their pots.
Nearly a quarter (23%) were also unable to say what rate would represent good value for money on their pension investments or savings, while some 40% saying a rate of return between 3% to 7% represented ‘good value'.
L&G retail retirement managing director Emma Byron commented: "The flipside of the flexibility offered by pension reform, is that we are all now responsible for making sure our pension pots will last through our retirement.
"But, as a nation, we are not spending enough time thinking about this, and about how we want to use our pension."
Guaranteed income was seen as the key to having an enjoyable retirement by 29% of respondents, while property was seen as representing better value for money than annuities among those who were familiar with the options available to them.
Byron said providers must boost efforts to communicate jargon-free with members about their options.
"Our research shows that for retirees who want clarity and certainty around the affordability of their planned retirement, annuities clearly have the potential to meet their needs," she said. "But, there is still work to do for all of us in our sector, to ensure that planning retirement and choosing how we access our pension are clearer and hassle-free."
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