IFA Magazine reports that 58% of non-retired Brits believe that current language around ageing and retirement fails to reflect them, or the life they want to lead.
The main culprits are terms like “OAP”, “senior citizen”, and “pensioner”. And this vocabulary could even be putting people off saving and investing for their future.
Keep reading for a look at why a positive spin on life after work could help you to reach your goals and live the retirement you dream of.
Current retirement language is “uninspiring” and could be damaging pension engagement
UK economic confidence isn’t high currently, at least if the results of a recent survey by M&G are to be believed. More than half (57%) of respondents expect the economy to worsen over the next 12 months, and almost a third (29%) are uninspired by the news they read and hear about retirement.
Retirement language is a major source of concern. Outdated descriptions of later-life, usually with negative or patronising connotations, dominate retirement discussions, with survey responders taking particular issue with:
- Senior citizen (43%)
- Pensioner (40%)
- Golden years (37%).
These terms could be harming pension saving and engagement, with dire consequences for those approaching retirement.
With insufficient funds saved, you might end your career without the accumulated wealth you need to live your desired lifestyle. You could even have to delay your retirement and work for longer.
Generally, those surveyed preferred terms that looked forward and saw retirement not as the end of a career but as the beginning of something new. Terms deemed empowering and motivating, and so likely to improve pension engagement, include:
- Freedom (64%)
- New adventure (55%)
- Next chapter (53%).
While savers might be reluctant to pay into a retirement fund for their old age pension, making regular investments to provide freedom in their post-career adventures might sound more appealing.
This could help to alleviate what work and pensions secretary Liz Kendall recently called, according to the Guardian, a potential “tsunami of pension poverty”.
Longer life expectancies are changing perceptions of what retirement can look like
Over the long term, life expectancies in the UK are generally rising. Retirees are living longer and so are retired for longer, changing perceptions around the whole concept.
There’s an increased focus on finding your retirement “purpose”. You might want to travel the world, ticking items off your bucket list, or spend more time making memories with family.
While you’ll likely want to leave a legacy, you don’t want to die a millionaire either, so spending your hard-earned money in a way that works for you is vital for a fulfilling next chapter.
That’s why the financial plan we help you put in place will always be aligned with your goals and your dream retirement.
The survey results also found that savers wanted:
- A clear summary of the potential value of their pensions and savings at retirement (45%)
- An annual financial check-up for expert advice on savings and pensions (31%).
As part of our role as your financial advisors, the team here at Globe IFA like to get to know you, your goals, and your financial circumstances. By understanding your position now, we can use cashflow modelling and forecasting to calculate the impact of potential changes, outlining the steps you’ll need to take to reach your goals.
We’ll then monitor your progress to ensure you remain on track and provide annual reviews, during which we can discuss any changes that are needed.
This gives you peace of mind in the present as you build wealth for your dream future.
Interestingly, the appetite for pension engagement among younger savers is encouraging. While 49% of those aged between 55 and 64 would like access to a consolidated retirement value, the figure is almost as high (42%) among younger demographics (those between 18 and 24).
Get in touch
If you would like help to re-engage with your pension savings, or you just want to check your progress, speak to us now. Please email hello@globeifa.co.uk or call us on 020 8891 0711 to discuss how Globe IFA’s expert financial advisors can help you manage your long-term financial plans.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance. The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
