Baby-boomers are better off than any other generation1 but one in three (33%)2 people nearing retirement don’t feel confident they’ll have enough funds to live on, according to a major report released today by LV=.
The LV= Income Roulette Report reveals that more than a quarter (28%)2 of people expecting to retire within the next five years don’t know how much they have in their pension pot. In addition, 51% of those facing retirement plan to spend their retirement funds on holidays, while 40% chose leisure activities and 23% focused on home improvements.
The research also reveals two in five (42%)2 of those who have already retired feel their financial situation has significantly worsened since doing so. Furthermore, over a third (35%)2 of retirees feel they’re often hit with unexpected costs like home maintenance, car repairs, or helping their children or grandchildren, meaning they frequently find themselves financially vulnerable.
LV= is encouraging people to start planning and seeking the necessary advice earlier so that they can make the transition into retirement with greater confidence. A robust advice process will include encouraging anyone considering their retirement financial planning to compare their current monthly outgoings with their expected outgoings in retirement. This will give a clear indication of the level of income required.