A recently published report has highlighted the positive impact planning and professional financial advice can have on income levels in our retirement. The first Retirement Income Uncovered report from Old Mutual Wealth found that retirees who hadn’t set themselves an income target to aim for in retirement had an average income of \u00a317,500 per year. However, those who saw a financial adviser at least once have an average income in retirement of \u00a320,800.<\/p>\n
Advice matters <\/strong> The report looked into the level and source of retirement income for people already retired from full-time work, plus those over 50 approaching this crucial part of their financial lives. This provided a concise picture of current and changing sources of retirement income, changing attitudes to work in retirement and also levels of satisfaction and understanding of the different sources of retirement income.<\/p>\n Other income sources<\/strong> Retirement reality<\/strong><\/p>\n We expect retirement to last for 21 years<\/p>\n 41% of retirees receive less than \u00a315,000 per year<\/p>\n There is a \u00a37,000 gap between men’s and women’s average income in retirement<\/p>\n Planning pays<\/strong><\/p>\n Those who had a target income in mind before they retired have an additional \u00a3157,500 income over the course of an average retirement<\/p>\n Retirees who used a financial adviser are more than twice as likely to have a target income in retirement \u2013 with an average income of \u00a326,000<\/p>\n One in four approaching retirement has a target income, compared to one in five current retirees<\/p>\n The changing face of retirement<\/strong><\/p>\n Those approaching retirement are 25% less dependent on a final salary pension compared with retired people<\/p>\n Those who have a retirement income goal are 63% more likely to be satisfied with their retirement income than those who do not<\/p>\n Source data:<\/strong> INFORMATION IS BASED ON OUR CURRENT UNDERSTANDING OF TAXATION LEGISLATION AND REGULATIONS. ANY LEVELS AND BASES OF, AND RELIEFS FROM, TAXATION ARE SUBJECT TO CHANGE.<\/p>\n A PENSION IS A LONG-TERM INVESTMENT. THE FUND VALUE MAY FLUCTUATE AND CAN GO DOWN. YOUR EVENTUAL INCOME MAY DEPEND UPON THE SIZE OF THE FUND AT RETIREMENT, FUTURE INTEREST RATES AND TAX LEGISLATION.<\/p>\n","protected":false},"excerpt":{"rendered":" Why having a target in mind clearly makes a difference to fund this stage of your life A recently published report has highlighted the positive impact planning and professional financial advice can have on income levels in our retirement. The first Retirement Income Uncovered report from Old Mutual Wealth found that retirees who hadn’t set… Read more »<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,5],"tags":[],"_links":{"self":[{"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/posts\/1205"}],"collection":[{"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/comments?post=1205"}],"version-history":[{"count":0,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/posts\/1205\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/media?parent=1205"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/categories?post=1205"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vizionwealth.co.uk\/news\/wp-json\/wp\/v2\/tags?post=1205"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nIn addition, receiving regular professional financial advice from an adviser doubles the likelihood that a person will have a target, and those who had a target and saw an adviser have an average income of \u00a326,000 a year, a 49% increase compared to those who did neither.<\/p>\n
\nIn addition, the report examines how other income sources are expected to make a greater contribution to the income of those yet to retire. As expected, access to, and reliance on, final salary pension schemes is on the wane, and while property downsizing contributes an average of just 2% of income for those currently retired, this rises to a 15% expected contribution for those yet to retire.<\/p>\n
\nOld Mutual Wealth partnered with YouGov to conduct research into the attitudes and behaviours of those currently in retirement or approaching retirement.
\nThe research was carried out via an online survey among YouGov’s consumer panel.
\nThe sample consisted of 1,536 UK adults aged between the ages of 50 and 75.
\nThe sample was split up into five brackets (50-54, 55-59, 60-64, 65-69 and 70+) with a target quota of 300 participants in the research from each age bracket.
\nYouGov invited a nationally representative sample to take part within each age bracket.
\nFieldwork was carried out between 4 July and 10 July 2014.<\/em><\/p>\n