We’re not as dumb as experts make out. The average Brit has a fairly clear idea about cashflow and recent research from Canada Life shows that for the man or woman on the Clapham Omnibus, the concepts of retirement are only broadly coincidental with “retirement ages”.

This from Pension Age (as I don’t have Andrew Tully’s press release)

The average UK working adult plans to start taking benefits from their private pension from age 62, according to new research from Canada Life.

The research has shown that despite not expecting to receive their state pension until age 67, the average UK worker plans to retire from work at 64, using private pension savings as a stopgap.

The report also stipulated that “age has a significant role to play”, with adults under 55 seeming more ambitious in terms of their financial goals.

Those under 55 on average planned to access their private pension at 62, and subsequently retire at 63. Respondents over 55 meanwhile stated that they planned to wait until 63 to access their savings, and wait a further four years until age 67 to retire from work.

Commenting on the findings, Canada Life technical director, Andrew Tully, said: “Working till you drop clearly doesn’t appeal to the average UK worker who has plans to slow down in their early 60s, typically retiring from work three years before their expected state pension age.

“This ambition is helped by an expectation that they will begin to access their private pensions before they retire, at age 62. This creates a clear financial planning issue and people need to take positive steps early to mind the pension’s gap. Whether that be saving more, moderating their ambitions or considering working longer.

“Product choice can also play a role as a solution which ensures flexibility, for example a lower income while working, increasing as you move towards state pension and then dropping again can prove beneficial from a tax planning perspective.

“As people approach retirement, it’s clear from our research the financial reality kicks in. If you are looking to retire on your terms a regulated financial adviser will be best placed to help you build a plan to meet your goals.”

Working things out for yourself

If you can find a financial adviser who can help you turn your pension pots into a retirement plan, you should use him or her.

But speak first to Pension Wise who will give you your options on the phone, on a web-chat or face to face. You can speak to Pension Wise for free and all you need to do is book an appointment for a forty minute session. Use this link.

Thinking ahead is a good thing to do. Turning your pension pots into part of your retirement plan can be hard work – but rewarding.

If you want to find out what AgeWage is planning to do to help thousands of people in 2020 , drop me a line on henry@agewage.com. I respond to all genuine emails!