People planning to retire this year are making saving money their top priority. Although dedicated saving immediately before retirement seems like an obvious and mundane finding, during the boom years at the beginning of the last decade many pre-retirees were beginning to spend their savings and a sense of frugality preceding retirement has again become a novel approach.
The Insurer’s Class of 2012 Study conducted by Prudential revealed the results of the research which showed that for people intending to retire this year, saving money for retirement was a top priority for 57 percent.
The study which examines the finances and the expectations of those retiring this year also found that women planning to retire this year were making saving more of a priority than their male counterparts: sixty-two percent of women make it a top priority compared to 52 percent of men. Saving while in retirement is also a priority for the retiring class of 2012.
Vince Smith-Hughes, a retirement income expert at Prudential said, “Today’s retirees are likely to spend longer in retirement than previous generations so it’s encouraging to see that they understand the importance of saving money to ensure they can live comfortably. Saving shouldn’t be regarded as something that suddenly stops once you retire, and the current generation of retirees seems to be more aware of this than ever before.”
However, the study found that saving in retirement was not all that they planned to do. Over a third of the respondents said that spending money on travelling the world is a priority for them. Forty-three percent said spending money on enjoying themselves is a priority.
Giving money to charity and spending money on fighting the ageing process were a top priority for fewer than 1 in 20 respondents.
“Saving as much money as possible, from as early an age as possible, is the best way to ensure you can afford a comfortable lifestyle in retirement. Consulting a financial advisor can also be an important step in helping retirees make the most of their pension pots, Smith-Hughes said.