Clients over 50 now more willing to take financial risk new survey finds
10 October 2017
The number of over 50s willing to take financial risk has grown despite the uncertain economic and political backdrop, new research from Retirement Advantage has revealed.
The Retirement Sentiment Report Expanding Horizons found the proportion of over 50s in the UK willing to take a ‘reasonable amount of financial risk’ increased from 24% in August 2016 to 28% in June 2017.
The research also revealed changes in their priorities from retirement income; the number of respondents wanting certainty fell from 46% in 2016 to 45% in 2017, while the desire for flexibility rose from 31% to 36%.
Andrew Tully, pensions technical director at Retirement Advantage, said: “It’s been a tumultuous year, both politically and economically. We expected to see a significant decline in retirees willing to take financial risk – battening down the hatches and taking a more pessimistic outlook in terms of their aspirations for retirement. However, the opposite is true: retirees are looking for more flexibility in their retirement finances and are increasingly willing to take some financial risk.”
The report also found a desire among the over 50s to remain active in their retirement, with 57% of those surveyed wishing to use their time to learn a completely new skill or hobby, while 27% plan to turn their interests or hobby into a new business venture in later life.
Tully added: “The mindset of retirees in the UK is both ambitious and adventurous – further illustrating that the shape of retirement is evolving at pace. The need to understand an individual’s aspirations for the future is clearly key to creating a financial plan capable of delivering it. Financial advisers are extremely well placed to provide guidance and products that will allow the right level of flexibility throughout retirement to allow people’s ambitions to change and grow.
“Advisers and product providers alike must strive to listen and understand what people want from later life in order to be successful in realising their vision of what it can be.”
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