One in eight adults aged 55-plus are planning to delay their retirement due to the Covid-19 pandemic.
This research, conducted by YouGov for Smart shows the financial effects of this health crisis.
The research also showed the majority of respondents (80 per cent) no longer see retirement as a one-off event, but instead anticpate moving from work to full-time retirement in stages.
Smart said its research also showed a third of UK adults (35 per cent) would prefer to manage their retirement finances themselves. This figure increased to 47 per cent in the 55-plus age group.
However, 37 per cent of those surveyed want some support in making retirement decisions. Of this figure 7 per cent wanted someone else to manage their retirement finances entirely, while 30 per cent wanted some assistance, but to remain involved.
The survey also showed those 55 plus wanted a degree of flexibility, with almost a third (27 per cent) saying they wanted to ability to alter their income if their financial situation changed; a further 29 per cent said they wanted to be able to withdraw ad-hoc lump sums
Smart Global MD Will Wynne says this survey showed that significant proportion of those in the 55 plus group (20 per cent) do not understand their options around finance at retirement.
This marries with the latest DWP research suggesting there was little evidence of people giving detailed consideration of the length of their retirement or their needs beyond the independent phase of later life.
Despite this though the research also showed those in this age group wanted control and flexibility when it came to their retirement finances.
He says: “This survey demonstrates that the nature of retirement is changing and fast. We know people want to be in control of their finances, but worryingly 47 per cent of adults aged 55+ who expect to retire or are already retired, want to go it alone.
“Retirement is complex and people need help if they are to make the most of their savings.”
He adds that the company has been refining its new Smart Retire solution to address this issue.Smart Retire aims to bridge the ‘advice gap’ by offering guidance in the run up to retirement. Members can use this solution in conjunction with advice from a professional.
Designed by Smart’s in-house research and UX team, Smart Retire has been built to be flexible and allow users to scenario plan and change their pension strategy as required.
Built with four pots, Smart Retire accommodates life’s unpredictability and ensures users avoid both under-spending and running out of funds in their retirement.
Of the four pots, two are income pots:
- Flexible income pot – monthly income in the early years of retirement
- Later life pot – leave money invested to buy a guaranteed income from an annuity provider later on in retirement
And two savings pots:
- Rainy day pot – dip in to this pot for emergencies
- Inheritance pot – put money aside to leave to a loved one
Smart Retire will initially be available to members of the Smart Pension Master Trust with plans to roll out globally in 2021.
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