Retirement goals

Think again! A new group of consumers, dubbed the ‘Late Financial Bloomers’ look set to change the face of retirement.

Currently this group, who are reaching financial milestones and achieving financial security later in life, accounts for just 6% of retired over-60’s; however, the group is set to rise considerably over the next 15 years or so. If this sounds like a bit of you, then read on!

You’re not alone – the trend is towards later financial security

An array of socioeconomic factors, such as later home ownership, are the primary drivers behind this shift. Divorce and marriage trends are also key contributors, as is having children later in life. First marriages now take place four years later than they did 20 years ago; similarly, divorce rates peak 20 years later than they did two decades previously.

With more women over 40 now giving birth each year than those under 20, a growing proportion of the population will be supporting children through education later in life, diverting attention from retirement planning.

Have I left it too late?

The short answer is no and whilst it’s better to plan ahead if you can, it’s certainly never too late to think about retirement planning. From our experience, people in this group may not think they need financial advice or they might have an opinion that they have left it too late. Sound familiar? Perhaps family and work commitments have left you with little spare time to think about your retirement or consider the options?

Does this mean a more complex retirement journey?

Reaching financial milestones later in life isn’t necessarily a bad thing. In fact, if you are continuing to work, you can keep paying into pensions and grow your wealth. There can also be positive benefits for your health by keeping fit and active as you get older.

The trend towards later financial security doesn’t necessarily mean a more complex journey into retirement, but as it’s likely that you’ll have less wealth at the ‘typical’ retirement ages, you need to plan and think differently about your assets and financial planning, as the time you may have to build your wealth could be condensed into a shorter period of time. We often find that people who are serious about their pension planning later in their careers also have a higher level of disposable income with which to make some real impact on their plans.

Understanding your own individual route into retirement is key

Whatever your situation, or if you just have some further queries you’d like to chat about, then our retirement experts at MyRetirement can provide you with a complimentary initial consultation to discuss your retirement needs.