Press release


Thursday 1 May 2014

• Just 54 out of 10,000 over 50s say they plan to go wild with pension cash
• Three quarters say they plan to use pension fund to secure sustainable future income

Britain's largest survey* of the over 50s has revealed that vast majority of people approaching retirement have a very sensible attitude towards spending their pension pot following the recent budget changes.  Saga Personal Finance interviewed 10,657 over 50s about their plans for funding their retirement and the bad news for sports car dealers is only 54 said they would do something wild like go out and buy a sports car with their pension cash.

Two thirds said that once they had taken their tax free lump sum they would use the remainder to secure a sustainable future income.  Proving that those who do the right thing and save for their retirement can be trusted with their own money!

A further 10% would draw down initial funds to pay off mortgage and/or other debt before using the remainder for sustainable income throughout retirement and 8% said they would take a holiday, buy themselves a few treats and then use the rest for income in the future.  A fifth (22%) said that their pension pot was quite small and they would therefore cash in their entire fund

Andrew Strong, chief executive, Saga Personal Finance, commented: "With just 3% of those affected by the pension changes saying they plan to go wild with their pension pot, this proves that concerns over pensioners blowing their money on a Lamborghini are unfounded.  People approaching retirement are in the main very concerned to ensure that they use their pension fund to provide an income to last them throughout their retirement."

The Saga poll also reveals that people over 50 do not need the government to tell them how many years they have left to live in retirement as they are remarkably clever at predicting their longevity. Saga compared peoples predictions of their own life expectancy with data from the Government Actuary's Department - as the table below shows people are typically accurate to within just a few years.

 Current age
Variance between life expectancy prediction and actual life expectancy 
  Current age
   Variance between life expectancy prediction and actual life expectancy
   55   -5.76
 56  -3.94    56    -4.52
 57  -6.12    57    -2.98
 58  -5.34    58    -2.34
 59  -4.4    59    -1.5
 60  -5.77    60    -4.12
 61  -5.82    61    -4.94
 62 -5.39
   62    -3.61
 63  -4.53    63    -4.07
 64  -3.34    64    -2.2
 65  -4.13    65    -2.63


Notes to editors

*Populus interviewed 10,657 adults, all aged 50 and over, online between 11th and 16th April 2014. Populus is a member of the British Polling Council and abides by its rules. 

About Saga Personal Finance

With more than 75% of the UK's household wealth held by the over 50s, Saga is well placed to help our customers make the most of their finances both before and during retirement.
Our customers trust us with £5.7billion of deposits in Saga branded savings accounts, and our personal finance services include: Share dealing service, credit card, savings accounts, Life insurance, ISAs, Financial planning, Retirement income services, Equity release advice service and a care funding advice service.