Active stage retirement plans are overshadowing later years plans, creating risk, new research from Standard Life has shown.
Almost two thirds (62%) of adults say they are focused on the early, active stages when they think about retirement, while 52% admit to not thinking about being older in retirement when they might suffer poor health or become less mobile.
The findings are part of Standard Life’s ‘Bringing Retirement into focus’ study, which looks at the attitudes, hopes and behaviours of people as they manage their finances to and through retirement.
The study found that those who are not yet retired believe they will be able to support their lifestyle until the age of 84, while those already in retirement expect to support themselves until 81. This is despite figures showing that more 600,000 people are living to age 90 and beyond.
Jenny Holt, managing director, customer savings and investments at Standard Life, said: “I think it’s natural that the vast majority of people focus on the early retirement years, when they tend to be more active and better health. It’s not easy to think about times in our lives when we might not be active or independent, however, this could leave a financial hole in later life, especially as we are living for longer and the time we spend in retirement is subsequently increasing.
“It’s crucial that people feel informed and engage with their retirement finances so they can have a financial future that lasts the full length of retirement. “
Three quarters (75%) of UK adults say they have done little or no planning around the amount of money needed to live on in retirement, while 28% admit they never review their long term finances to check how they are progressing.
However, Standard Life research has shown that those who have planned for the future expect their funds to support them for 19 years compared to just 11 years for those who have not done any planning.
Holt added: “We don’t know when the inactive phase of retirement might begin and it can be a difficult thing to think about but it’s essential that we do. Having a plan in place brings peace of mind and can improve quality of life and it’s important to be realistic about the duration of retirement from the active stages to the less active ones.”
