Babyboomers are reinventing retirement

Aviva said babyboomers were reluctant to hang up their hats and intended to travel the world, enhance their social lives and improve their health and fitness.

Despite this ambitious and positive outlook, the research found the reality of the babyboomer's financial situation might prove to be a rude awakening.

Of those surveyed, 43 per cent of retirees saw retirement as the start of a new, exciting stage of life, 23 per cent would like to be using the time to travel the world and 49 per cent want to spend more time on hobbies.

However, Aviva said it's research worryingly revealed the difference between reality and fantasy when it comes to retirement finances.

Over half of over 55s who currently earn £20,000 to £30,000 a year have saved less than £30,000 for their retirement. This translates to an income of around £165 per month.

Yet despite this, almost a quarter of people (23 per cent) in this category anticipate a retirement they describe as 'comfortable', demonstrating a dramatic difference between what they are used to and what they might actually afford.

Clive Bolton, 'at retirement' director for Aviva, said Babyboomers had enjoyed certain benefits such as rising house prices and final salary pension schemes, but many may would still struggle to fund their desired retirement lifestyle.

He said: "In the run up to retirement, people should think about how they want to spend their days, and in reality, how much this will cost.

"Regardless of what pension pots people have, turning them into a viable income is vital, so shopping around for an annuity is an important next step.

"This research also opens up an interesting debate around who should fund retirement.

"If Babyboomers are unprepared, there may be an expectation for younger generations to foot the bill in one way or another."