"It’s clear from this insight that people’s experiences of retirement vary quite widely."
- Tom Evans, managing director of retirement at Canada Life
Four in five (79%) over 55s are charting their own path to retirement, shunning guidance and advice, according to research from Canada Life.
Canada Life asked over 55s how they were finding the overall retirement experience, given the ongoing economic pressures of rising living costs.
The research found four in five (79%) of over 55s who have retired did so without the help of financial guidance or advice, preferring to opt for a DIY approach to managing their finances. This comes as nearly one in three (29%) of the same group admit they are not experiencing the retirement they dreamed of. More positively, two in five are (39%).
One in ten retirees (11%) did not anticipate just how much money they would need in retirement, and are finding life after work more difficult than they expected and wished they’d planned properly (11%).
More than a third (36%) of retirees said they had experienced unexpected health challenges, however 27% said that although they weren’t living the retirement they’d planned, they were still very happy.
Money, or lack of, are big drivers of overall retirement satisfaction for the over 55s. Inflation and the cost-of-living crisis are having a negative effect on retirees, with one in five (21%) saying they hadn’t factored rising costs into their plans. Preparing for unexpected costs has also caught retirees out, with 13% receiving bills they weren’t expecting. A relative lack of savings (12%) was cited by one in ten who said they didn’t have enough money to live the retirement they planned, while a similar number of over 55s (11%) did not anticipate just how much money was needed to fund retirement.
Tom Evans, managing director of retirement at Canada Life, commented: “It’s clear from this insight that people’s experiences of retirement vary quite widely. While a lack of retirement funds and the impact of rising costs are clearly issues facing the current generation of retirees, unexpected health issues trump both of those, and the dreams of many have been shattered.
“Planning your retirement and ensuring it is flexible enough to navigate the many challenges you will face is vital to feel in control to enjoy your later years. Engaging the services of a qualified financial adviser early on is a fundamental part of that process. An adviser will not only be able to help with product choice, investment selection and tax, but will help you navigate any unexpected bumps in the road along the way.”
