One in ten UK retirees spent less than an hour to determine their retirement options, according to research from Legal & General.
Legal & General (L&G) and Unbiased.co.uk have revealed that while 22% of retirees spend a year or more researching their travel plans and other big dreams for their life in retirement, 12% admitted that they spent less than an hour arranging their retirement income and 14% later regretted not spending more time arranging their retirement income.
Half of the 1,500 UK retired adults over 55 that contributed to the research said they spent three months or less planning and arranging retirement income, 43% spend a month or less, and 33% spending a week or less. Only 16% of respondents said they spent a year or more.
Despite not having spent much time on their retirement incomes, 71% said they had planned their retirement dreams.
When asked if they had any regrets about how much time they took planning their retirement income, 14% said they felt they hadn’t spent enough time arranging their retirement income and were concerned.
Only 10% of those surveyed had received financial advice and said they were confident in the income they receive.
Overall, only 38% of over 55 year old retirees said they were happy with their retirement income, while nearly a third said they were ‘dissatisfied with the amount’.
Tim Gosden (pictured), head of strategy for Legal & General’s individual retirement solutions business, said that the research shows a clear knowledge gap among retirees aged 55 and over about the time required for planning their retirement income.
He said this gap, along with the amount of time we spend dreaming about retirement, is ‘worryingly inadequate’.
He said: ‘Many of us will now live into our nineties and beyond and so taking less than three months, let alone less than an hour is unlikely to be long enough to plan ahead. Investing in time, which includes researching options, seeking financial advice and shopping around the market for the best deal can pay real dividends, particularly if it results in a lifetime of extra income.’
The fact so many are spending less than an hour on their retirement planning is ‘hugely concerning’, said Unbiased.co.uk chief executive Karen Barrett, she added that people are spending time looking into all the income options that are available to them at retirement.
‘It’s vital that if people don’t understand their options they seek the right advice. Only a whole of market adviser can review all of the options available in retirement and ensure you are getting the best income possible,’ she said.