Retirees facing longer retirements should seek full financial advice on the widest range of product options open to them from April, according to provider LV, which commissioned a major piece of research it says points to the need for “flexibility” to cope with changing circumstances.
The insurer commissioned Opinium to survey more than 2,000 adults online in October, with results published today (3 November) including responses showing that within the first five years of retirement almost a third of retirees will see their general health deteriorate.
Significant regional differences exist in terms of health deterioration in retirement, with the figure rising to 44 per cent of retirees living in Scotland, closely followed by retirees in Yorkshire and Humberside with 43 per cent.
Moreover, the research found close to one in 10 British retirees had contracted a ‘serious’ illness within the first five years of retirement.
The need to financially support others was also cited as one of the key changes retirees’ face, with 28 per cent stating that they had financially helped family members. Retirees in London were most likely to have provided their families with financial support (39 per cent), with those in Wales least likely to have been called upon (15 per cent).
Living arrangements also commonly changed in early retirement, with 24 per cent of retirees significantly updating or renovating their home or garden, whilst 21 per cent had moved home.
Richard Rowney, LV’s life and pensions managing director, said: “Although retirement is often seen as a time to take your foot off the pedal there are often life changes that occur that could lead to financial upheaval.
“It is therefore essential that retirees have a degree of flexibility around their finances so they can adapt to a change in their needs.”
Mr Rowney added that as people are living longer, it is inevitable that retirees will see their circumstances change at least once.
He added: “We would always recommend that people seek financial advice and consider all the options.”