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Most savers want to draw pension income before 65

Almost 70 per cent of savers want to start taking an income from their pension fund by the age of 65, research shows.

In a survey of 1,012 adults, pension and insurance provider MetLife found 7 out of 10 wanted to draw on their private savings before the current state pension age for men. A quarter hoped to start cashing in on retirement savings by 60, while just 3 per cent said they are willing to wait until they are older than 70.

MetLife UK managing director Dominic Grinstead says: “The overwhelming majority of retirement savers would like to start drawing on their pension fund by 65, although a substantial minority are happy to wait until they are past their 65th birthday.

“Protection against inflation is the key for half of all savers with just 10 per cent choosing maximum income at the outset as their main concern. The key to helping people make the right choices at retirement is to keep the options open to them as simple as possible.”

The research formed part of MetLife’s response to the Treasury’s consultation on ending of compulsory annuitisation at age 75. As a result of the changes, new flexible and capped drawdown pension regimes will be introduced from April, next year.

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. they may “like” to draw their pension at 65 but does it make sense to do so? Research on “likes” instead of planned retirement produces little in the way of value.
    its like asking someone if they would like to retire early most will say yes and the opposite if asked if they have planned to retire early.

  2. Maybe Tom should listen to Travis Mccoy’s song Billionaire to realise what “most” people want!

    It does make me laugh, that investors who set their retirement aims for 50, now cant take benefits until 55. At the back end, changes to negate the need to annuitize at age 75 have been introduced and back to the start we go, the subject that most people would like to draw their pension before 65 is aired.

    Bottom line is that nothing has really changed except the people tinkering with the rules.

    Happy 2011 everyone.

  3. Does it really matter what “savers” want when the vast majority will have little choice when the time comes ?

    Unless “savers” learn that there is a big difference between saving and investing and also accept that they need to borrow less and invest far more then they can want whatever they want but it is not likely to happen.

  4. I’m missing something here. Research saying people wanted to take their pensions before 65 is a response with doing away with the Age 75 rule?!!
    Either the research is stupid or the reporting is. Even Dominic Grinstead’s comments are not on the same wavelength.
    We have so much noise instead of reporting that it is understandable that the general public have no idea what is going on.
    And it hardly take research to know that people want to take their pensions before 65, just as they want to go on long holidays, rob banks and not get caught, play football like Wayne Rooney. You get the picture. It not about what we want to do, but what we are able to do based on the way we have planned our lives and finances. And we have far too much information telling us that too few people have saved enough to have a decent pension even at 65.

  5. Lala land. They need to put some in to get something out!

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