Panthera Wealth’s retirement survey 2020 - the results are in!

 06 November 2020
Panthera Wealth’s retirement survey 2020 - the results are in!
  • Are you ready for retirement?
  • Looking for advice?

The best people to ask about what retirement is like are probably those who have recently done it! This September, we surveyed a sample of our clients who had already retired to discover: 

  • How they prepared for retiring
  • What they’re enjoying in retirement
  • Their ongoing retirement finances 

The results provide a snapshot of real-life retirement in 2020, including the motivation for retiring in the first place.

Retire earlier than you expected

With an average retirement age of 61, the majority of our survey participants retired well before the State Pension age of 66. 89% of them retired earlier than they had originally planned, with the majority (44%) retiring 2 to 3 years earlier than they expected. 

Work was the major trigger to an early retirement:

  • 45% said they were tired of working
  • 25% said they were stressed out at work
  • 25% were unhappy with changes in their work situation, including loss of job satisfaction, a company relocation, and redundancy  
  • Only 5% cited health issues

Given this level of dissatisfaction with work overall, it’s hardly surprising that 95% of our respondents said that from deciding to retire to actually retiring took them less than five years. Once retired, 55% confirmed that what they enjoy most about being retired is freedom from 9-5 working. 

Plenty to look forward to

Our respondents were very clear about what they wanted to do in retirement:

  • 27% wanted to be  "Just not working!"
  • Another 27% wanted more time for their hobbies and favourite sports
  • 18% wanted more time with family and grandchildren
  • 23.5% wanted to travel

Once retired, our respondents seemed to be doing what they had planned, with 23% doing mostly hobbies and sports, 25% enjoying their home and garden, 14% looking after grandchildren, and 22% travelling.

Interestingly, none of our retirees wanted to set up another business or venture, or even a side-hustle in retirement. One respondent explained their reasons further:

“I enjoy being able to follow my own daily routine rather than that imposed by the work environment, and not having to take work home most evenings.”

So, it looks like they all wanted a clean break from work, period!

Concerns about retirement

Our respondents did have some concerns about retiring, and these were mainly about the finances. 28% were concerned that their investments might not last, 23% were concerned about funding the retirement lifestyle they wanted, whilst 19% were concerned about running out of money overall. Interestingly, 10% were concerned about how they would fill their time, but in contrast, 7% were wondering how to fit everything in that they wanted to do!

Planning for retirement

Our respondents are a savvy bunch, and 64.5% of them had consulted Paul at Panthera to help them plan for retirement. Almost a quarter of them (23%) drew down part of their pension early. They said that taking action helped them:

“To see that at the time it was possible with the right advice and planning.”

 “To pay off our mortgage early and make detailed plans for retirement.”

 “Have confidence to relax and proceed with my plans. I was able to separate short, medium and long term plans.”

Careful what you wish for!

It’s interesting that in retirement, our respondents found themselves doing more of some things than they expected; 28% travelled more, whilst 22% found themselves doing child care for grandchildren, more than the 18% who originally had planned to do so!

However, the rewards are there too, such as:

“Doing what I want when I want!”

“Just enjoying not having to rush about, and having time to just relax.”

What I miss about work is…

Our respondents probably echo the sentiments of many younger people now working from home in what they missed about having a regular job:

  • 30% missed the social aspect
  • 30% missed the challenge and mental stimulation
  • 25% missed working with other people

Only 5% missed the financial security of a salary, which is reflected in how our respondents viewed their financial position in retirement. 65% felt they were comfortable with all planned outgoings covered, 25% felt very comfortable with money left over each year, whilst only 10% were dipping into savings for regular outgoings.

And how would they spend any extra money they have? Travel (37%), home improvement and gardening (29%) and hobbies and sports (15%).

What is the biggest myth about retirement?

Almost half our respondents (45%) said the biggest myth was "You don’t need to plan your finances in advance", closely followed by "The government will look after you" (30%). 15% cited "Your pension will always be enough to live on"

Asked what they would do differently if they were retiring next year, 30% said they would save more earlier on in their life. We hope they are passing on these wise words of wisdom on retirement to the next generation too!

Why getting the right advice is crucial

Finally, we asked a question to help us improve our own retirement planning service - “How has working with Paul at Panthera Wealth helped with your retirement?” Overall, the theme was the same - Paul’s advice here at Panthera made the planning process easier, helped secure their finances, and gave them confidence to turn their early retirement dream into a reality.

“Paul has given me reassuring and reliable advice not only on financial issues but lifestyle planning, as well helping me to plan my retirement more easily.”

“I admit that at the time some of the planning seemed over-detailed and tedious but it was all worth it. Four years into retirement and the planning is still accurate.”

“Paul’s advice has helped us secure and grow our savings.”

“It made it possible for me to save a pot of money … Not having to depend only on my pension gives me a better chance of a better retirement.”

“ I have complete confidence and faith in the advice Paul has given us, and am confident that my retirement is comfortably funded.”

“Advice from Paul enabled me to feel more confident about my decision to take early retirement… I have every confidence in Paul and can only thank him for the support and advice that he gave me at this key point in my life.”

“Paul has taken great care to prepare us for a financially comfortable retirement. We are not financially savvy and rely on Paul and his clear explanations to reduce our concerns.”

“Worry is the main thing that can destroy what should be a time to enjoy the fruits of your many years of labour. Having Paul to reassure and advise has taken away the uncertainty and allowed peace of mind that I am doing the best I can.”

“If I had not worked with Paul I would not have been able to retire early and enjoy the life I am living now. Paul's advice is always spot on and his guidance is crucial to my retirement now and in the future.”

“I have thoroughly enjoyed working with Paul and the Panthera team for the last 4 years. Paul is personable, professional, and very knowledgeable regarding all aspects of retirement financial planning … I highly recommend Paul and Panthera Wealth for your financial and pension planning management.”

Plan your retirement with Panthera

If you’d like help planning for your retirement, or to find out if you can retire early, call us here at Panthera Wealth. Despite our name, you don’t have to be wealthy or have lots of assets - we work with you to assess your current assets and pension/s, and help plan for your future. 

So, if you’re fed up with work or wondering if you can afford to take that tempting redundancy package once furlough is ended, call us. We’re here to help.

 

Panthera Wealth

Protecting your hard earned assets into retirement and beyond 

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Paul is extremely personable and puts you at ease. He was able to listen well to our concerns & advise & guide us accordingly. His help has been invaluable and has refocused our minds on achieving our goals & dreams.

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