Brexit could see 30% of older savers change retirement plans

Added 25th July 2016

Around a third of people in the UK approaching retirement are looking to change their financial plans as a result of the Brexit vote, research by UK insurer Prudential suggests.

Brexit could see 30% of older savers change retirement plans

Some 30% of 55 to 64-year-olds said they would have to rearrange their finances after being faced with uncertainty due to Britain's decision to leave the European Union last month.

The survey which questioned over 715 people of different age groups across the UK also found that 37% of 55 to 64-year-olds may be forced to delay their retirement until the economic picture becomes clearer.

With over half a million people retiring across the UK each year, the findings mean that nearly 150,000 could be set to change their financial plans, while 55,500 could possibly push back their retirement date.

In addition, one in five - or 20% - of the survey respondents planned to seek financial advice as a result of the referendum vote, citing a need to change their retirement planning with more than half (51%) admitting they may retire later.

A further 31% plan to move their investments into ‘cautious’ or ‘defensive’ ratings.

However, the majority of respondents - 74% - said they plan to save the same amount of money or more as a result of Brexit.

Downsizing delusion

The figures coincide with a recent report from Royal London which predicts that as many as three million working age Britons are relying on their home to fund their retirement by downsizing to a smaller property – described by the company’s policy director Steve Webb as the “downsizing delusion”.

“Hoping to live off the value of your home could be a ‘downsizing delusion’ for millions of people. In most of Britain, the amount of money you could free up by trading down at retirement to a smaller property would generate a very modest income. Someone who chose to save for later life through their home rather than through a pension could easily see their income halve at retirement,” he said.

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Monira Matin

Senior Reporter

Monira joined International Adviser in March 2016 from Informa Global Markets where she worked as a eurobond reporter for over two years, covering fixed income markets. She has previously held a number of editorial positions covering politics, insurance and technology. Monira has a degree in Journalism and Economics from City University.

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