New Research Uncovers Retirement Expectations Vs Reality

31st July 2023

A new survey by Legal & General reveals the expectations and realities of retirement in the UK.

L&G surveyed 2,000 retirees aged 50+ in the UK to understand the highs and lows behind the retirement journey.

41% of people said they were most worried about running out of money before they retired and 41% confirmed, that since retirement they have needed more money than anticipated.

Almost half (47%) of UK retirees say their retirement income has not been used as they intended, with 71% citing the cost-of-living crisis as the main factor.

Feeling financially secure for the rest of their lives is the most important goal to UK retirees (94%).

16% of people have £0 in their retirement pot at the time of retirement.

The mean average amount in a pension pot at retirement is just over £185,000.

Expectations vs Reality: Before retirement, 54% of retirees said they were most looking forward to having more time to themselves and 53% said they were looking forward to spending more time with family. However, 30% said they were worried about losing their sense of purpose especially after stopping work. Travelling and holidaying was the top activity for those planning retirement (52%), others looked forward to focusing more time on their existing hobbies (41%) or looking after grandchildren (26%).

However, 15% of respondents who planned on travelling have not done so, while 13% have not dedicated more time to their existing hobbies. 40% of retirees said they didn't do enough planning for retirement - with 31% stating they didn't go anywhere for advice ahead of retiring.

Money worries: The research finds money worries are the biggest cause of pre-retirement angst, with 41% stating that they need more income than anticipated in retirement. The data finds:

16% of people have £0 in their pension pot at the time of retirement.

21% have saved between zero and £49,000.

In contrast, roughly 12% of respondents have amassed over £500,000, while 5% have saved between £700,000 and £899,000.

A happy retirement: 41% of retirees said ‘happy' was the word that best describes how they felt about retirement before retiring. Reassuringly, 45% of retirees said that ‘happy' was still the top word they associate with retirement since doing so - followed by ‘satisfied’ (43%) and ‘in control’ (34%).

The full details of this research can be found in the attached press release. More information and a variety of visual assets can be provided upon request.

Read the full survey HERE