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LV= Insights

Reaching Retirement

28 November 2018

The final instalment of our 2018 Income Roulette Report , based on research conducted with over 8,500 people, reveals that the Reaching Retirement are better off than the Peter Pan and Sandwich Generation but still face fears with the transition into their retirement life.

  1. More than three quarters (77%) of those already retired consider themselves financially capable compared to the national average of 63%.
  2. Despite being better off than the average, more than 2 in 5 (42%) of those already retired don’t feel they’re saving as much as they want to.
  3. They worry emotionally about being intellectually stimulated and maintaining good health.
In Retirement - who are they?

The Reaching Retirement group are those that are either coming up or in retirement. They are generally better off than the other two groups and feel more financially capable. The research shows a different picture when you look at those who have already retired, who are generally better off than average. However, a quarter (25%) worry about their financial stability in retirement and 42% say that their financial situations have become worse since they’ve retired.

Approaching Retirement

As well as looking at those in retirement, our research looked at those approaching retirement in the next five years. Staggeringly more than a quarter (28%) do not know how much they have in their pension fund, and a third (33%) feel confused about financial matters, signalling a clear need for financial advice.

Only a third (37%) of the group approaching retirement feel confident and excited about their future which presents advisers with an opportunity to help demystify retirement confusion and uneasiness before they begin their journey.

The earlier people start planning and seeking necessary advice, the easier their transition into retirement will be. We will encourage anyone considering their retirement financial planning to compare their current monthly outgoings with their anticipated retirement outgoings, and to seek the advice of an independent financial adviser.

Pie graph showing Only one third of those approachig retirement are confident about their future

What's next?

John Perks, Managing Director of Life and Pensions

To help the ‘Reaching Retirement’ it is important for them to know that there is quality financial advice available to them.

A key action that could be taken to help combat these types of issues could be the Single Finance Body have a strategic focus of targeting guidance around life events, including approaching retirement. Those who are nearing retirement should have the ability to attend a check in to encourage excitement and positivity on their next life stage!

We believe by providing better access to information, guidance and advice, more can be done to help people transition into retirement with confidence. With the right preparation in place, people can then look forward to and enjoy a more financially and emotionally resilient retirement.

John Perks Managing Director of Life and Pensions

Products to consider

In 2015 Pension Freedom and Choice was introduced to gives clients more control over their retirement funds, but it also gave them more responsibility to make the right retirement choices.

If your clients are within 5-10 years of retiring, we have a range of product options to help your clients achieve their retirement goals.

LV= Flexible Transitions Account

Your clients may want an easy to understand, straight forward personal pension and we have just that. Our low cost Flexible Transitions Account includes:

  1. 0.25% service charge up to £1m
  2. More than 160 investment funds from 19 quality fund managers
  3. Funds from across all major sectors
  4. Investment Management charge from just 0.1%
  5. Series of risk rated managed portfolio
LV= Protected Retirement Plan

The Protected Retirement Plan offers your clients breathing space whilst allowing their pension fund to continue growing over a fixed period. The Protected Retirement Plan is suitable for clients that are:

  1. Within 5-10 years of retirement
  2. Still healthy (look at wording)
  3. Want to grow their pension fund as well as taking an income
  4. Want choice for the future

For our full range of options, visit our retirement product pages.

Tools to help you

We have a range of tools to help you help your Reaching Retirement clients throughout their protection and retirement journeys to help safeguard their lifestyle in retirement.

LV= Risk Reality Calculator

To help you and your clients understand the chances of being out of work or suffering a serious illness, we’ve created a handy online tool.

LV= Retirement Hopscotch

This tool outlines what your clients should watch out for, the range of options available to them and the main risks and considerations when choosing a retirement solution.

ONS March 2018, ‘How do the post-World War baby boom generations compare?’ https://www.ons.gov.uk/peoplepopulationandcommunity/birthsdeathsandmarriages/ageing/articles/howdothepostworldwarbabyboomgenerationscompare/2018-03-06

Methodology for consumer survey: YouGov, on behalf of LV=, conducted online interviews with 8,529 UK adults between 20th and 26th June 2018. Data has been weighted to reflect a nationally representative audience.


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