Health, happiness and holidays key priorities for babyboomers
The three ‘Hs' - health, happiness and holidays - are among the chief priorities for the babyboomer generation when considering retirement according to new research conducted by YouGov for AXA Wealth.
But, despite believing that they will have it better than succeeding generations, many of our babyboomers - particularly younger ‘boomers' - will have to reconcile their retirement dreams with the reality of a fourth ‘H' - household expenses: they believe they will have to work longer to meet their household and lifestyle needs in retirement and are still placing emphasis on expecting payback in retirement from the State and property.
The AXA Wealth survey covered four of AXA's segments that make up the babyboomer generation: younger and above average wealth, the over wealthy, the mid wealthy, and soon to retire wealthy.
28% expect to retire at age 65 , with 21% intending to retire at age 70 or later, 8% say they will never retire
25% expect the State to pay most of their pension
56% have no private pension provision and 43% are not part of a company pension scheme
31% indicate they plan to move to change their lifestyle and free up cash for retirement - as 11m move into retirement this could place 3.5m more houses on the market
80% believe that they will have it better than succeeding generations.
The soon to retire wealthy seem to be best prepared, with 36% saying they are fully prepared and happy about retiring. The over wealthy appear to be workaholics, with 11% saying they would never retire. The mid wealthy appear to be the most in trouble with 49% saying that they simply cannot afford to retire.
David Thompson, managing director, AXA Wealth, says: "Our babyboomers appear to be too focused on the reverie of the good times present, which is not surprising given that between them they currently have vesting pension values of £14.1bn today, rising to £32bn by 2018. This is however skewed towards the more prosperous or older segments.
"There are, however, hints of growing concern amongst the less wealthy or younger generation. These concerns are: dependants, debt, delaying retirement, dependence on the state and downsizing. As a result some of our babyboomers may have to delay retirement, working for at least five years longer - some as many as a decade longer - than the current State norm.
"This dichotomy does however suggest a key role for IFAs with the babyboomer generation, with support to maintain the wealth of the more prosperous group, who are living ever longer into older age, while helping all babyboomers to improve their retirement saving and to make the most of the tax incentives available."