How retirement has changed

COVID-19 has changed the world as we know it including, of course, retirement planning. For those approaching retirement in the next 12 months, the plans they might have made are likely to be under continuous review.

Based on a recent in-depth review of the attitudes and aspirations of this year’s retirees, we’re taking a look at the key trends that you may wish to consider if you too are re-evaluating your retirement plans.

Timing

The pandemic has shifted attitudes and priorities across almost all aspects of people’s lives, but specifically, the timing of retirement is one thing that has changed for many.

The research uncovered that 37% of people have sped up their retirement date in the past 12 months. The opportunity to work from home and escape the daily commute, has freed up time to enjoy other things. It has provided a glimpse into what retirement might look like and many like what they see. Some may have found themselves forced into an early retirement due to a change in work circumstances or redundancy. While others were doing the opposite with 12% deciding to delay retiring.

When you choose to retire is important, the timing of it can limit or increase your earning potential prior to retiring. If you are considering changing your retirement date, your planner can help you understand any impact this may have.

Goodbye to 9-5?

Traditionally when we think of retirement we think of the departure from working life. Although people often look forward to giving up work as part of their retirement plans, others have no intention of doing so fully

Whether it be a financial or emotional driver, the growing trend of working in retirement is clear from the research. Just 44% see retirement as giving up work completely.

The rise in flexible working as a result of covid has also been a contributing factor; making stepping back rather than stepping away much more achievable than ever before with 22% planning on simply reducing their hours.

Travelling

Unsurprisingly traveling remains a key aspiration. However, research shows that 30% of people have had to reconsider their travel or holiday plans in retirement.

As a result of covid, uncertainty around safety and travel restrictions has led to more and more people choosing a ‘staycation’ or investing in a UK based holiday home over heading overseas.

Whether you’re swapping the Côte d’Azur for the Cornish coast or simply delaying your travel plans, it’s important to consider the financial impact, if any, that changing your original plans may have.

Reassessing what’s important

Lockdown living forced many of us to reassess what is important. With 51% worrying about not being able to do the things they want to in retirement.

As mentioned, travelling is one concern However, for 43% of people, not being able to spend time with family and friends is a huge worry. For the peace of mind that another national lockdown wont hinder the opportunity to visit loved ones, there has also been a trend in cross-country moves to be nearer to children and grand-children.

A move in retirement may not have been on the cards prior to covid, however, this may now have become a priority for many.

Reviewing your plan

In times of uncertainty, making a plan can seem like a waste of time. However, this is not the case. We believe that having a plan in place, and continually reviewing it as your aspirations evolve and change is hugely important.

Whether making changes as a result of covid or otherwise, your financial planner can help to ensure that your plan reflects your expectations when thinking ahead to retirement.

Please remember that the value of investments can fall as well as rise and you could get back less than you paid in.