Prudential report pensioners failing to budget for life in retirement
Released
on: July 25, 2008, 6:12 am
Press
Release Author: Prudential
Industry:
Financial
Press
Release Summary: Research conducted for Prudential reveals one
in four pensioners admit to spending on average £8,000 more
in the first year of retirement than in subsequent years
Press
Release Body: According to new research conducted for Prudential,
UK pensioners are failing to budget for life in retirement, with
many spending considerably more in year one than in subsequent
years, only to regret their splurge as the reality of living on
a pension bites.
The
study found more than one in four (29%) pensioners admit to spending
more in their first year of retirement,
on average splashing out £8,000 more than in subsequent
years.
The
research also found that 19% of those who had spent more in the
first year of their retirement regretted doing so and only around
a third (32%) of retired UK adults said they set a retirement
budget. More than a third (34%) said they just played it by ear
and a mere 17% saw a financial adviser for advice on living on
their pension
savings.
Despite
this, the study conducted among retired UK adults, found that
63% said they felt they had planned their finances adequately
before retiring.
Gary
Shaughnessy, Prudential Managing Director Retail Life & Pensions,
said: “It is quite worrying to see the lack of planning
people undertake as they approach retirement and it’s particularly
surprising to see how few of today’s pensioners sought financial
advice. Seeing a financial adviser should be a baseline activity
for everyone planning their retirement so that they structure
their finances to maximise retirement income from all available
sources, including pensions, savings and investments and equity
in their homes, if necessary.”
- ENDS -
The
information contained in Prudential UK's press
releases is intended solely for journalists and should not be
used by consumers to make financial decisions. Full consumer product
information can be found at www.pru.co.uk.
Notes to editors
Study conducted among 4,051 UK adults of whom 726 were retired
with a private or company pension.
All
figures, unless otherwise stated, are from YouGov Plc.
Total sample size was 4,051 adults. Fieldwork was undertaken between
2nd - 6th May 2008. The survey was carried out online. The figures
have been weighted and are representative of all UK adults (aged
18+).
About
Prudential:
Established in 1848, today Prudential plc is
an international financial services company with a product range
which extends from personal banking, insurance,
pensions and
retail investments, to institutional fund management and property
investments.
In
the UK Prudential is a leading life and pensions
provider with around seven million customers.
Web
Site: http://www.pru.co.uk/
Contact
Details: For further Prudential media enquiries, contact:
Lynsay Dickinson
PR Manager
Prudential
3 Sheldon Square
London
W2 6PR
0207 150 2524
www.pru.co.uk
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