Since the pension reforms last year more and more retirees are worried about their savings, with many spending less than £20 a week, new figures show.
According to a poll by Responsible Equity Release, almost a third of pensioners (31%) worried about draining their pension pots admit to having ‘No Spend Days’, when they don’t spend any money on themselves after food and essentials.
Worried that they might drain their pensions too quickly, nine out of 10 (89%) respondents said they had definitely become more frugal with money.
More than two-thirds (68%) of respondents admitted that supporting their family had left them struggling for money and not able to fully enjoy their retirement, while nearly half (45%) admitted they resented having to help their families out.
Three in 10 (30%) say they spend less than £10 a week on themselves, while more than half spend less than £20.
Steve Wilkie, managing director of Responsible Equity Release, said: “Clearly pension freedoms have changed the way many people view and manage their investments. We are more aware now than we’ve ever been of how well our pensions and investments are performing, because we need to be.
“It’s good to see that people are financially engaged, however, the danger is that awareness can quickly turn into an obsession that takes over your life. The results suggest many are concerned about outliving their money, and as a consequence are worried about spending.”
Pension freedoms were introduced in April last year and allow anyone over the age of 55 to take some, or all of their pension, as a lump sum, with the first 25% paid tax free.
The poll of more than 1,500 pensioners found that since the pension reforms three-quarters of retirees check their investments weekly to see how they are performing.
Eight out of ten (80%) said they check their investment portfolio more often now, with 30% admitting they have become obsessed by how well their pension/investments are doing, worrying constantly that they might be losing money.
Six out of 10 (60%) respondents confessed they had checked the performance of their investments while out at dinner with their husband or wife, more than half (55%) while at the breakfast table, 48% on holiday or by the pool, 43% out with friends, 40% at the pub and 40% while in bed. One in ten (10%) even admitted checking their pensions while sitting on the toilet.
Wilkie said: “It’s important to find a balance between living an active retirement, achieving your long-term goals and ensuring you have enough money for the future, otherwise the golden years of retirement could pass you by.
“Although annuities have received a considerable amount of bad press over the past couple of years, what they do offer is a regular, guaranteed income for life, enabling people to get on with enjoying their retirement without having to worry about how well their investments are performing. Many people will still choose the annuity route simply for that reason alone.”
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