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L&G: 10% take under an hour to decide retirement future

by Michelle Abrego on Jan 30, 2014 at 07:55

L&G: 10% take under an hour to decide retirement future

One in ten UK retirees spent less than an hour to determine their retirement options, according to research from Legal & General.

Legal & General (L&G) and Unbiased.co.uk have revealed that while 22% of retirees spend a year or more researching their travel plans and other big dreams for their life in retirement, 12% admitted that they spent less than an hour arranging their retirement income and 14% later regretted not spending more time arranging their retirement income.

Half of the 1,500 UK retired adults over 55 that contributed to the research said they spent three months or less planning and arranging retirement income, 43% spend a month or less, and 33% spending a week or less. Only 16% of respondents said they spent a year or  more.

Despite not having spent much time on their retirement incomes, 71% said they had planned their retirement dreams.

When asked if they had any regrets about how much time they took planning their retirement income, 14% said they felt they hadn’t spent enough time arranging their retirement income and were concerned.

Only 10% of those surveyed had received financial advice and said they were confident in the income they receive.

Overall, only 38% of over 55 year old retirees said they were happy with their retirement income, while nearly a third said they were ‘dissatisfied with the amount’.

Tim Gosden (pictured), head of strategy for Legal & General’s individual retirement solutions business, said that  the research shows a clear knowledge gap among retirees aged 55 and over about the time required for planning their retirement income.

He said this gap, along with the amount of time we spend dreaming about retirement, is ‘worryingly inadequate’.

He said: ‘Many of us will now live into our nineties and beyond and so taking less than three months, let alone less than an hour is unlikely to be long enough to plan ahead. Investing in time, which includes researching options, seeking financial advice and shopping around the market for the best deal can pay real dividends, particularly if it results in a lifetime of extra income.’

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3 comments so far. Why not have your say?

Paolo

Jan 30, 2014 at 10:29

No suprises but still makes depressing reading.

I met with a board of Trustees only yesterday who were unhappy with the service their members were getting , as "too much time was being spent on advising how the income side was arranged and their members just want their lump sums quickly".

If the supposed professionals are pushing for the wrong priorities, then how on earth are the members going to understand the importance of the decisions they are making!

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Hickky

Jan 30, 2014 at 10:32

It seems to me that compulsory face to face meetings with an IFA prior to crystalisation should be manditory.

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Man of Kent

Jan 30, 2014 at 10:33

Surely if a third of retirees over 55 are ‘dissatisfied with the amount’ of income, this is more likely to be due to the size of fund than any lack of advice?

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