13 Jan 2014
Research, by older people's charity Anchor, questioned 2,000 under 60s on their aspirations for older age, and pinpoints the blueprint for the dream retirement in the UK:
- Retire at: 63
- Be retired for 25 years
- Live: 11.5 miles from your family in a three bedroomed bungalow
- Holidays: Two a year
- Spending: £13.5k* each year, in addition to a state pension
Aspiring retirees aged 18 to 60 say they would exercise once a day (36%) and most would like to live with their lifelong partner (66%) and a pet dog (43%). Forty one per cent would like grandchildren to visit weekly and 29 per cent would like to live by the sea.
Nearly half (48%) of people would like to spend their time learning a new skill or hobby, 16 per cent plan on taking on paid work and one third (33%) will volunteer. A laid-back 29 per cent are planning on never working again and dedicating their retirement solely to leisure pursuits.
However, a fifth of people aged 45 to 60 say they will rely on their state pension to be their main source of funding for their retirement, and 44 per cent are not paying currently in to a private pension. Now Anchor is highlighting the disparity between people's retirement aspirations and the provisions they have in place, encouraging those with retirement dreams to plan well enough to make them a reality.
The age group most likely to be paying into a private pension are the 35 to 44s, 56 per cent of whom are doing so. But while 45 per cent of people of all ages feel they can't afford to set up a pension plan, nearly a fifth (19%) say they simply haven't got round to it. This is despite 70 per cent dreaming of living mortgage free in retirement and 37 per cent hoping to leave a nest egg to their children. A flash 13 per cent are banking on owning a sports car.
With the average amount people think they will need to save to spend in each year of retirement equating to a little over £1,000 a month on top of the state pension, some aspirations may not be met without more advance planning.
Anchor's Chief Executive Jane Ashcroft comments: "Our research shows that we have a picture-postcard view of retirement, and while it's important to aspire to happy living in later years, it will only become a reality if people in their 30s, 40s and 50s get set up for the future now.
“It’s worth exploring the full range of retirement options, for example Anchor villages and housing often have guest rooms which allow families to stay without the expense and hassle of living in a larger property.
"It’s never too early to talk to a financial advisor and work out what is realistic for you to put away each month to help make those retirement dreams become a reality.”