• New report reveals two thirds (66%) of adults retiring this year risk running out of money
• Almost two in five (37%) 2021 retirees have accelerated retirement due to Covid-19
• Launched today, the Class of 2021 report by Standard Life Aberdeen looks at how ready this year’s retirees are for what is to come
Two thirds (66%) of 2021 retirees risk not having the pension savings to sustain their planned retirement income, according to a new report launched today from Standard Life Aberdeen.
In its inaugural Class of report, surveying UK adults planning to retire this year, Standard Life Aberdeen revealed how ready the Class of 2021 is to retire, identifying what worries and excites them most, and how recent events have impacted their plans for retirement.
The research found that a 2021 retiree plans to spend, on average, £21,000 a year in retirement – almost £10,000 less than the average UK household income (£29,900)*.
However, looking at their pension pots, and factoring in the money they’ll receive from their State Pension, analysis shows that two thirds (66%) are at risk of running out of money.
The average value of a Class of 2021 pension pot is £366,000 – but a third (33%) admitted to having less than £100,000 saved.
John Tait, Retirement Advice Specialist at Standard Life Aberdeen, said:
Standard Life Aberdeen’s Class of report also interviewed 2020 retirees to see how they’re getting on. Despite Covid-19, seven in ten (70%) said they were happy with their decision to retire last year.
Not having to go to work is what the Class of 2020 are enjoying most about retirement, followed by spare time and spending more time with family.
More than a third (34%) have enjoyed taking up new hobbies – with the main ones being gardening, fishing, and baking.
* ONS average household income, UK: financial year 2020
Download the Class of report here.
For further information, contact:
T: +44 (0)203 773 9545
M: +44 (0)774 214 2411
Consumer research of 2,000 UK adults who were either due to retire in the next 12 months, or had retired in the past 12 months.
Research was carried out by Censuswide in February 2021.
About Retirement Advice from Standard Life Aberdeen
Retirement Advice from Standard Life Aberdeen is a new advice service combining the benefits of traditional face to face advice with the convenience of digital.
With experienced advisers on the phone, supported by innovative technology behind the scenes, it’s designed to be a lower cost way to get advice on your retirement.
Retirement Advice from Standard Life Aberdeen can help customers who are ready or preparing to retire, and offers a free retirement income estimate in a personalised Retirement Report via their website.
By answering a few simple questions, in less than 5 minutes customers can get an idea of how much income they could expect from all their assets, not just pensions. Using the Retirement Living Standards, an independent benchmark, customers can see how their income compares. Plus, if they have a partner, they can see all their assets and incomes together.
Advice can involve investing, the value of investments can go down as well as up, and could be worth less than originally invested.
For more information about Retirement Advice from Standard Life Aberdeen click here.