A big thank you to all of you who visited my stand at the recent Cheltenham Connect business day and took the time to help me with my book research. I promised I would feed back the responses so here goes.
FIRSTLY I ASKED TWO QUESTIONS:
At what age do you think you will start to move into retirement? (changing jobs, moving to part-time, starting a new business, etc.)
Perhaps not surprisingly the average age was 65, but this disguised a big range with 30% in their 50’s, 50% in their 60’s, and 20% at 70+.
At what age do you expect to entirely stop working, volunteering for charities etc?
The average age was 81 with a whopping 58% expecting to be still active at 80+ . Only 18% expected to stop in their 60’s. I think this is great and really shows that people do not want to be “taken out of use” as one dictionary definition of ‘retirement’ says…
Financial considerations were not a major factor but the new pension flexibility which permits variable pension income withdrawals has certainly had an impact on people’s retirement strategies.
SECONDLY THERE WERE THREE QUESTIONS DESIGNED TO TEST PEOPLE’S UNDERSTANDING OF THEIR EXISTING PENSION PLANS.
Having removed those answers which indicated that respondents did not have pension plans (24%), the average score out of 30 was 15 showing some knowledge but overall not a great deal of confidence.
The average score out of 10 for general confidence that the plans would provide the required retirement income was 6/10 – pretty good- but those scores fell to 5/10 for confidence that the underlying investments were performing well and only 4/10 when it came to understanding the pension plan charges.
Admittedly the attendees were predominately business owners and the sample is too small to draw final conclusions but it was a very interesting exercise. My overall conclusion was that there is still a great deal of work to be done in simplifying what, for most people, is a very complex and confusing aspect of their lives.
There was not a specific question about whether people were using the modern online platforms or preferred the more traditional relationship with a regulated financial adviser but the general feedback was that the online platforms had become very user friendly and had increased knowledge and confidence considerably.
As a thank you to all of you who took part (or who would still like to take part) I would like to offer a free 30-minute telephone consultation just to talk about how well your retirement plans are coming along and whether there is anything you can do to reduce costs and improve performance.
Just text me on 07770 575122 mentioning “Cheltenham Connect” and I will get back to you.
As my regular blog readers will know I am always banging on about the fact that the money sat in your pension plan is ” YOUR MONEY” and it really does deserve “YOUR ATTENTION”. If you don’t look after it now, don’t expect it to look after you in retirement.
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