Following the introduction of new UK pension system rules on A-Day on April 6th, many older people plan to show that reaching retirement age does not mean they are over the hill, new research suggest.
More than a third of those surveyed by Lloyds TSB Private Banking said they plan to use their unused pension funds to fund a backpacking holiday.
From A-Day onwards, those eligible to draw on their pension will be able to make a tax-free withdrawal of up to a quarter of their unused pension funds.
The remainder can be invested or used to fund an income.
A-Day and the associated changes to the UK pension system will give Britons more "financial freedom and flexibility", says Lloyds TSB Private Banking's chief executive, Mark Cheshire.
But he warns people not to be impulsive, saying: "It's always worth considering what you will need in the future and making your money work in the best way for you."
Of those surveyed by Lloyds TSB Private Banking, 35 per cent of the ones between the ages of 45 and 54 said they will use their tax-free lump sum to travel the world.
A third claim that they will use the money to pay off their mortgage, while 21 per cent plan to use this money to help their children become first-time buyers.
Property investment seems like a popular choice for many, with 17 per cent considering buying a property abroad and 13 per cent indicating that they might buy another home in the UK.
Retirement age means globetrotting, poll suggests
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Retirement age means globetrotting, poll suggests
Tue, 07 Feb 2006
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