Retirement may seem a long way off for many of us, but a recent survey from Aviva reveals some of the things that those closer to retirement – adults over the age of 50 would advise their younger selves to do differently.
Make pension planning a priority
More than 1,000 people took part in the Aviva survey and 25% said they would have taken their pension more seriously, with 22% saying they would have invested more into their pension overall, if they had the chance again.
In addition, 18% would have budgeted better for their retirement and 16% would have created a more comprehensive retirement plan at a younger age.
Other important priorities (for the over 50s) were starting a pension early (52%), saving into an emergency fund (53%) and maximising contributions into their workplace pension (34%).
Re-think spending and clear debt
When asked what the over 50s would tell their younger selves to focus on, more than half said clearing debts as soon as possible (54%) was a priority. Surprisingly, one in six (of those surveyed), who are fully or semi-retired, still have credit card debt (16%) and mortgage debt (7%) in retirement.
Almost two-thirds (64%) said they would advise against relying too much on loans and credit cards. More than half (54%) recommend avoiding extra expenses on things like designer labels, overspending on cars (44%) and spending excessively on weddings (41%).
So what would the over 50s spend more on?
Interestingly, the over 50s said they would rather invest in lifetime experiences (35%) and hobbies (34%) over expensive belongings.
25% said critical illness or life insurance were also very important.
And thoughts from a financial adviser?
“As a financial adviser in my early 50’s, with three decades experience in financial services behind me, I know just how easy it is in your 20s and 30s to put retirement planning off. It feels distant, and there are always more immediate priorities” says Claire Davison, Independent Financial Adviser
“But if there’s one lesson I would pass on to my younger self, it’s that time is the most powerful investment tool you will ever have. I have two children in their early 20s, and I can’t stress enough to them how valuable it is to start pension saving now. Even modest contributions build into real choices and freedom later in life – it’s less about sacrifice today and more about paying your future self first”
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Stats provided by Aviva
