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Shift toward greater pension safety among over 50s after EU leave vote

Joanna Faith
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Joanna Faith

In the wake of the EU exit vote, more over 50s are prioritising safety over flexibility when it comes to their retirement income.

A study of 1,000 people found 46% ranked certainty as their top priority, up three percentage points compared with a similar survey conducted before the referendum. The desire for flexibility, meanwhile, waned by three percentage points and is now only priority for 31% of people.

Instant access (14%) and income growth (9%) continue to be seen as lesser, complementary income priorities, the research by annuity provider Retirement Advantage found.

Andrew Tully, pensions technical director at the firm, said: “The over 50s clearly want to take advantage of the pension reforms. However, following the vote to leave the EU, we find they are prioritising safety amid turbulence in the wider economic and political environment.

“While people still want to have some flexibility to cope with whatever the future may bring, it doesn’t always translate into practice. Whether it’s a natural reaction to economic fear, or simply people not looking for financial advice, we are seeing fewer over 50s realise their needs for financial flexibility in retirement.”

The research also found the over 50s are more concerned about being able to afford the things they want to do in retirement than their health. They are also now more likely to use the internet to access financial information, rather than planning to consult a financial adviser.