Thursday, July 29, 2010
Category:
Consolidation
According to Aviva, the ‘Babyboomer generation could disrupt the typical view of retirement’. New research has revealed that 43 percent of those who have retired view this as the beginning of a ‘new, exciting stage of life’. It was found that 23 percent would like to spend this time travelling around the world, while 49 percent would like to spend a greater amount of time on their hobbies (with 60 percent hoping to make money from these hobbies). In addition, 62 percent of retirees reportedly intend to ‘get into shape’ in order to enjoy a more lengthy and healthier retirement.
However, the research also shows that more than half of those over the age of 55 who are currently earning £20,000 to £30,000 have saved less than £30,000 for their retirement, which equates to approximately £165 per month. The fact that 23 percent of these individuals are expecting to enjoy a ‘comfortable’ retirement demonstrates a significant difference between what they are used to and what they might be able to afford, according to Aviva.
Aviva’s ‘at retirement' director, Clive Bolton, commented: "Babyboomers have enjoyed certain benefits such as rising house prices and final salary pension schemes, but unfortunately many may still struggle to fund the retirement lifestyle they desire. In the run up to retirement, people should think about how they want to spend their days, and in reality, how much this will cost. Regardless of what pension pots people have, turning them into a viable income is vital, so shopping around for an annuity is an important next step.
"This research also opens up an interesting debate around who should fund retirement. If Babyboomers are unprepared, there may be an expectation for younger generations to foot the bill in one way or another. This issue is particularly relevant in the current environment. In order to move forward, people in this country need to decide collectively what is a fair balance between paying for their own welfare, and relying on the wealth created by future generations."
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Homeowners who are not currently in a position to set money aside for their retirement, perhaps because of multiple credit card repayments each month, could consider taking out a secured loan to tie these debts up. One of many finance options available, a secured loan for debt
consolidation could leave borrowers with just one monthly repayment as opposed to juggling several. What’s more, borrowers could be left with more money each month, which could potentially be set aside in a saving account to fulfil those future retirement plans. However, if opting for a secured loan to consolidate debt, it should be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
