Martin Lewis discusses pensions and retiring
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Home and garden improvements, prioritised by 36 percent of people, is followed by 32 percent of people who wish to top up day-to-day living expenses.
Adventure is on the horizon for the 24 percent who say the holiday of a lifetime is on the cards for their retirement.
But those looking forward to retirement haven’t forgotten about their children and grandchildren, as 23 percent said they will help their progeny get on the property ladder.
The desire to support their family doesn’t end there as 15 percent say they will pay for their grandchildren’s education so they won’t be carrying so much debt.
The pursuit of financial security is also relevant to those preparing for retirement as 14 percent say a priority is to clear their mortgage and nine percent needing to pay off unsecured debts.
Alice Watson, a spokesperson for Canada Life said: “It’s clear that we all have our unique goals for later life, and our own way of achieving them, whether that be using savings, pension or property wealth.
36 percent of people are planning a garden anf home makeover when they reach retirement (Image: Getty)
“As a result, no one individual’s retirement plan is likely to be the same as someone else’s.”
Others say they’ll use their property to access extra cash in retirement. 14 percent are planning to downsize and a further 12 percent are considering releasing equity from their property.
The holiday on stamp duty throughout the pandemic may also have made this a particularly enticing prospect.
This may cause problems down the line as, according to Compare My Move, the average cost of moving house in the UK in 2021 is £8,951.
This shows that once legal fees and moving costs are factored in, the money freed up by moving may not be as substantial as some expect.
So people contemplating downsizing should plan carefully to make sure they aren’t disappointed.
Alice Watson said this is because “property wealth is growing and increasingly being used alongside other assets as part of a more holistic retirement plan”.
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“While equity release is a long-term decision that should always be considered carefully with the right advice, it has a valuable role to play in helping today’s homeowners live the retirement they’ve worked long and hard for.
“Releasing equity not only allows homeowners to unlock the cash in their homes in a safe and flexible way, it can also help to support their lifestyle choices in later life.”
What is the state pension? (Image: Express)
A survey by the Office for National Statistics (ONS) also showed that the pandemic has had an effect on retirement planning.
It showed that 13 percent of over-50s have altered their retirement plans.
Five percent have been spurred to retire earlier than previously planned but eight percent now plan to retire later.
Certainly, the pandemic has hammered home the importance of planning for unexpected events.