Half (49%) of those in their 50s have done nothing to prepare for retirement, rising to 54% of those in their 40s.
Nearly a third (27%) of UK residents nearing retirement have not done anything to prepare; including not making their own arrangements, contacting a financial adviser, or sought support from friends and family.
Just 32% of those approaching retirement have done any research online or plan to do so, with 29% meeting with a financial adviser – or planning to do so.
Working retirees
Of today’s retirees, 73% had no plans to work during their retirement. Only 45% of those yet to retire said the same, suggesting a recognition that working later in life may be necessary.
The ‘Voice of New Retirement’ report compares the expectations and the realities of retirement of more than 6,000 UK residents.
The report also looks more broadly at factors influencing happiness and wellbeing: such as finances; relationships; health; working life; leisure; and vision, including life ambitions and future plans.
Of the retired respondents, 62% felt their experience was better than they had expected, and 29% went as far as to say it was “much better”.
Happiness
Retirees were considered to be overall happier than those not yet retired, when taking finances, health, diet, exercise and time spent with family into consideration.
Almost two-thirds (62%) of retirees described themselves as happy, compared with 42% of those not yet retired.
A further 14% of retirees claimed to be “extremely happy”, compared with 7% of non-retired people.
Feelings of being in control, fulfilled, and content with general health also seemed to be higher in retired people.
Financially secure
More than half of retirees (55%) said they felt happy with their finances. This compared with only 30% of those not yet retired.
Unsurprisingly, only 36% of retirees who left their planning until the last minute have achieved their financial goal, compared with the 66% who started planning well in advance.
Of those who had planned ahead, 69% said they felt “happy” or “very happy”, while 72% said they had enough money to enjoy a comfortable lifestyle.
Those who left financial planning too late considered retirement to be worse than they expected and were twice as likely to be unhappy with their financial situation – 21% versus 9% of those who planned well in advance.
Inspiring and alarming
Rodney Prezeau, managing director, consumer platform, Aviva UK Life, said the findings were “inspiring and alarming in equal measure”.
“On the one hand, it is reassuring to see the ideal of a happy retirement exists, and that many of today’s retirees find the experience exceeds their expectations,” he said.
But added: “Growing older brings many challenges which mean happiness is far from a universal experience, but this shows that planning ahead can greatly improve your chances of finding fulfilment. It sounds obvious, but just by saving smarter you could be working towards a happier retirement.
“At the same time, the relative happiness of current retirees begs the question: is this a golden generation, unlikely to be seen again?”
