World travel, adventure sports and writing a novel

Traditional views of life on a pension as a time to wind down and relax are increasingly outdated, with those retiring in 2008 seeing it as an opportunity to do the things they’ve always wanted, according to the Prudential Class of 2008 Retirement Survey.
The research, among those retiring this year, revealed that 58 per cent of those drawing a pension in 2008 see it as a time when they can take control of their lives and do what they’ve always wanted to do, with just 14 per cent saying they were looking forward to retirement as a time when they can stop working and put their feet-up.

One in three (33 per cent) of those retiring in 2008 said they see it as a time when they can combine some paid and unpaid employment with doing the things they’ve always wanted to do.

And when it comes to ambitions, the class of 2008 are aiming high. Nearly 27 per cent say they want to spend at least three months of the year abroad, with 23 per cent looking to learn a foreign language, 12 per cent looking to write a novel (rising to 17 per cent of women) and 11 per cent planning to learn a musical instrument. An evergreen 7 per cent intend to find a new partner, 5 per cent want to build their dream home and 4 per cent plan to learn to scuba dive. In addition, 19 per cent of 2008 retirees intend to move to a new area post retirement, with more than half (52 per cent) of these people intending to move abroad.

However, more than a fifth (22 per cent) of those retiring in 2008 said they were concerned about whether they’d be able to afford to live comfortably and do all the things they wanted, and 5 per cent said they were not looking forward to retirement.

Gary Shaughnessy, Managing Director of Prudential Retail Life & Pensions, said: “Improving health care and greater longevity mean those retiring today are likely to be able to enjoy far more active lives through their pensionable years than any previous generation, but to enjoy the benefits of this, early financial planning is essential.

“While those retiring this year may have dreams of foreign holidays and a life of active leisure, the reality for many is that life on a pension will bring far greater financial constraints than they envisage.

“While early saving is critical for younger generations, those retiring this year should look to consider all possible sources of income when planning how to generate their retirement income. In particular they need to look beyond just getting an annuity and consider wider savings and investments options, including equity release, to maximise the money they have available. More than anything, we strongly encourage people to see an independent financial adviser before deciding how they will structure their retirement income plans.”