What does retirement mean nowadays?

a happy retirement........

More than ten per cent of people who had planned to retire during 2012 are making alternative arrangements and putting off drawing their pension for the time being, according to the latest results from Prudential’s Class of 2012 research.Now in its fifth year, Prudential’s research focuses on the finances and aspirations of people planning to retire.Of those deferring their retirement, a third (32 per cent) claim they do not want to retire yet, while two thirds (68 per cent) say they are putting it off because they can’t afford to retire as originally planned.

However, showing that giving up work before growing too old is still an aspiration for many, the average age of people planning to retire this year is 60 years old – a similar age to last year’s survey and seven months younger than in 2010. Vince Smith-Hughes, Prudential’s retirement income expert, said: “One thing this year’s retirees have in common is actively making choices about when and how they will retire. Although many people think the idea of retiring as early as 60 is out-dated, the majority of this year’s retirees are defiantly sticking to that plan. It’s likely that many of these people will have accumulated benefits in final salary pension schemes that generate an acceptable income in retirement – perhaps signalling that the golden era of retirement for baby boomers isn’t over yet.

“It is, however, undeniable that there is a new retirement reality for a significant number of retirees. People are living longer, and for many, the very real prospect of a thirty year retirement is either unpalatable or unaffordable, hence the decision by many to continue to work. Retirement is also becoming a more opaque concept, with many people working part-time, either out of necessity or desire.

“To stand the best chance of having a comfortable retirement, which starts when you want it to, it’s important to seek professional financial advice on saving for a pension and on what post-work income options are available. Saving as much as you can as early as you can will help you to gain more control over your retirement. “

IFA’s are the most popular and trusted source of advice

IFAs are consumers’ most popular and trusted source of financial advice, according to research from the Financial Services Authority (FSA).

The FSA’s Consumer awareness of the FSA and financial regulation report showed that just under half, 47%, of all consumers who received financial advice in the last 12 months saw an IFA.This compared to 41% who received advice from a bank or building society, with 12% seeking their advice elsewhere. Of those consumers who saw an IFA, 61% said they were very confident the advice they received was appropriate, compared to only 33% of bank or building society customers. The report said this could be due to the nature of client relationships.

‘The reason for the difference could be due to the nature of the relationship, with greater continuity of knowledge and personalisation by an IFA than a bank or building society,’ it said.

The survey research also suggested that only 17% of consumers received financial advice in 2011.

We have always known this, but please ensure that your friends and family are aware of this and ask them to contact us for professional, trusted advice