Almost one in three adults in their 60s yet to touch pension

Almost one in three people in their 60s have left their pension pots untouched, according to new research published by LV=.

A survey that quizzed more than 1,000 adults above the age of 50 with defined contributions about their retirements revealed 32% of those in their 60s, and another 16% of over-70s, were yet to access their pension.

LV=’s research also found that of those who hadn’t yet accessed their pension pot, 48% of those in their 60s, and 24% of over-70s, suggested it was because they were still working.

LV= managing director of savings and retirement, Clive Bolton, called it ‘encouraging’ to see that people were working longer as the barriers to working past retirement age ‘fall away.’

“This trend for staggered retirements is good news because continuing to work offers many financial and health benefits,” Bolton said.

“It is often taken for granted but continued good health is one of the best financial assets people can have. The benefits of working – such as remaining physically active and continued social interaction – can make a big difference to people’s mental wellbeing and overall health in retirement.”

With people living longer, and the added prospect of health care costs in later life, LV= suggested retirees were increasingly understanding the benefits of having a larger pension pot in later life.

The survey results also revealed that of all those who hadn’t accessed their pension pot, 51% suggested it was because they were still working, while 25% of those in their 60s indicated it was because they wanted their pensions to last as long as possible.

When the retirees who hadn’t accessed their pension were asked about alternative sources of income, 47% indicated they’d taken an income from cash savings. Another 35% suggested they had relied on a partner’s income, 22% on a partner’s State Pension, and another 12% suggested they had relied on an income from property investments.

Bolton continued: “People are making sensible choices about retirement to ensure that they do not run out of money, but it’s also really important that they also make their pension savings work for them past retirement age so they don’t miss out on the ability to generate growth above inflation for when they are ready to start to draw their pension.

“There are lots of product and fund choices available to help achieve this and it’s a good idea to seek help from a financial adviser so that people can enjoy the retirement they want.”

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