Almost a fifth want to spend 'every penny' of retirement savings

Almost a fifth (17 per cent) of UK adults are prioritising spending every penny of their retirement savings without running out, according to Canada Life.

Research from the firm, which quizzed adults who had received financial advice, found that more than one in 10 (13 per cent) will also consider how much of their children’s inheritance they can spend in retirement.

However, almost a quarter of respondents (23 per cent) said they were prioritising building their savings in retirement, which Canada Life interpreted as a sign that many could be worried about the current suitability of their retirement income.

The study found that the most common priority was making sure that savings lasted throughout the length of retirement, with more than half (54 per cent) of respondents naming this as a priority.

A similar amount (51 per cent) though having a sustainable income was a priority, while managing the amount of risk taken with income was key for around a quarter (26 per cent) of respondents.

Canada Life MD and executive director, wealth management division, Sean Christian, commented: “This research shows we as consumers have multiple priorities for our retirement funds and one size clearly doesn’t suit all.

“The desire to ensure our savings last as long as we do naturally becomes important. But planning your finances and balancing the need to enjoy what you have without fear of running out of retirement funds is always going to be a tricky balancing act.”

He added that establishing a relationship with a financial adviser “will help those approaching and in retirement to feel confident about how their income will last”, adding that this could be “crucial” when coupled with the flexibility to adapt plans to deal with changing needs and circumstances.

Christian finished: “Having the right product solutions available which are flexible enough to adapt to any change in circumstances, is also key. Blended pension products that combine guaranteed annuity income with the ability to draw down are great solutions in achieving this level of flexibility.”

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