New research from Age UK Enterprises, the commercial services arm of the charity Age UK, has found that the majority of over 60s (74%) have made exciting plans for their retirement, from extended overseas holidays (26%), to home refurbishments (20%) and exploring new hobbies (16%).
But that optimism is countered by a lack of confidence in how far their money will stretch as over a quarter of respondents (29%) feel uncertain or negative about their current financial situation.
With tumbling annuity rates and poor returns on savings, securing a comfortable retirement has become an ever more challenging task. More than a quarter (27%) of those who feel uncertain or negative about their current financial situation feel that the financial crisis has heavily impacted on their financial plans for retirement, while more than one in four (29%) stated they didn't earn enough money throughout their career to save for later life.
However, the majority (81%) of those who are pessimistic about their finances believe that they didn't spend enough time planning for retirement.
Gordon Morris, Managing Director Age UK Enterprises said: "Our survey shows that many people nearing later life are excited about their retirement and keen to make the most of it, but the financial crisis could put their ambitions at risk. In this challenging economic environment it is more important than ever to properly plan ahead to maximise income in retirement, so that the needs and aspirations of later life can be met.
"For those at the point of retirement, comparing annuity rates can be one of the most significant ways to enhance income in the long-term. Purchasing an annuity is a once in a life time decision so it's crucial to shop around for the best rates and the right type of product. Customers should never simply accept the annuity offered by their pension provider, but check first if other companies offer higher rates or a product that better suits their needs."
Source: IFA Life