Planning For Old Age 'Should Start As Early As Possible'

People need to start planning as early as possible if they want to make the most of their retirement, according to a well known insurance provider. The rising cost of living means many people are struggling to pay their existing bills and are failing to put money away for their retirement.

The research shows one in six who receive a tax-free lump sum from their pension arrangement used it to pay off a mortgage, while almost a quarter used the lump sum to pay off other debts rather than spending it on enjoying their retirement.

Research by the group has found nearly half of all retirees enjoy travelling, with 45 per cent saying they like nothing more than packing their rucksacks and heading overseas.

A further 27 per cent said they had taken up a new hobby since leaving work and ten per cent revealed they had started studying again.

Commenting on the findings the head of pensions market development at the company, stated: "It is vital that people who are still working realise the difference between wanting a good retirement and actually planning for one."

It is encouraging to see that so many people are enjoying themselves after they retire. It's a shame that some people need to spend their hard earned savings on paying off a mortgage or clearing debts. Retirement should be about enjoying life.

If people take action now to start saving enough, then they will be able to make their retirement dreams and aspirations come true, avoiding what can be the reality of having to struggle to get by in later years. He added it was a shame so many people had to spend old age scrimping and saving.

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