New research published by Prudential, the Lifetime Mortgage Provider, reveals that the generation gap is wider than ever with today’s under 25s planning for a fairy-tale retirement, while the current generation of retirees paint a less rosy picture of their retirement hopes and fears.
According to Prudential’s research the mantra of the live fast, die young generation has long gone and today’s under 25s aspire to be a generation of family-focused, freedom-loving travellers in retirement. This generation is looking forward to enjoying the good life in their retirement, but many may not have considered the hard realities of being a pensioner.
When asked what they are most looking forward to when they reach their retirement, over two-thirds of under 25s named spending time with their grandchildren and almost as many said they would want to go on long holidays. Over half were also hoping to finally have the freedom to do what they want to do. Half were looking forward to living in their ideal home. However, only 7% of the under 25s worry about not having enough money, which realistically may put their travel plans and dreams of a perfect home in jeopardy.
Those people already retired are taking a more practical view on their hopes for their life as a pensioner. Having the freedom to do what they want still rates highly for the over 65s, as does spending more time with their grandchildren. The desire for a lovely home is also still important to almost a third of those in retirement.
Although health features on top of the list, money is also an important issue for current retirees, with almost one in ten being worried about their finances in retirement. With many people no longer putting enough money away for the future, this figure can only get higher.
Ali Crossley, Pru UK’s Director of Lifetime Mortgages, said: “It is good to see that today’s young generation has such a positive outlook regarding their retirement life. However, the reality of this may be somewhat different if they don’t start planning to achieve their retirement aspirations. Many of today’s pensioners are already struggling to pay for their day-to-day expenses – not to mention any ambitious dreams. The over 65s retirement fears and worries clearly show that reality is different to what the younger generation expects it to be, with money being an issue for retirees.'
While today’s pensioners state they are looking forward to having the freedom to do what they would want to do, this may come with a hefty price tag. Luckily, most over 65s have benefited from the rapid house price rises in the past decades, allowing them to now unlock the value held in their bricks and mortar.
Prudential’s flexible lifetime mortgage allows people to release the money held in their homes, bringing them a step closer to achieving the retirement they desire.