Most people approaching retirement age have no plan for their pensions, new research has revealed.
Money experts Irish Life found that 59% of people with private pensions don’t know about the vital decisions they must make that affect their retirement income.
And they’ve warned of the importance of meeting with a financial advisor before drawing down your pension in order to make sure the right decisions are being made.
As well as that, just over 40% know how much is in their pension plot - with men far more likely to know the value than women.
John Groarke, Pensions Marketing Manager with Irish Life, said: “Our research show most people are excited about their retirement.
“For those people who have done the right thing and saved into pensions throughout their working lives, we want to highlight they still have a very important decision to make as they approach their retirement.
“There are significant options to be considered regarding how to convert their hard-earned pension pots into an income and people need to give themselves time to get informed and then to decide on the best option for them.
“Our research shows that people who meet their Financial Broker or Adviser within a year of retiring are more financially prepared so it pays to get timely advice so you can fully embrace your retirement.”
And retirement coach Marianne Heron has recommended that checking in with a financial advisor between five and 10 years before retiring to make sure you’re financially on the right path.
She said: “Retirement is a fantastic opportunity to be who you want to be and do whatever you want to do in life – the key is to be proactive and to take control of your own wellbeing.”
Marianne’s guide, which is sponsored by Irish Life, advises people to ‘Rewire, don’t Retire’ in order to see retirement as an ongoing process and not a one-off event.
Her ABC plan is based on three simple elements:
A – Attitude: Having a positive outlook is vital for effectively dealing with change.
B – Having a ‘bee in your bonnet’: Once retired it is important to find your passion such as a new hobby or volunteer work which will help you to form a new identity.
C – Contact: Social contact improves your wellbeing and protects your health.
