4 in 10 clients expect to work past retirement age

New research suggests that 43% of advised clients expect to work past standard retirement age and 29% are actively considering retiring overseas. The trend to retire later and potentially overseas is set to increase, according to a study by investment provider HSBC Life. HSBC Life says its nationwide study suggests the use of investable capital must adapt to help support clients with their changing plans. HSBC Life (UK)’s report, The Three I’s of Investable Capital, in association with consultancy Technical Connection, found that retirement plans were altering. Key findings: • 44% of clients working with advisers expect to work and generate income beyond standard retirement ages - rising to 64% among those aged 35 to 45 • 24% of clients expect or plan to retire abroad • Advisers estimate that 45% of their clients have a need to generate an income from their investments and 42% are drawing on capital rather than on natural income Mark Lambert, head of onshore bond distribution at HSBC Life (UK), said: “The idea of a standard retirement age linking in with state pension age still resonates. It is a reasonable point in time to be used in Financial Planning where an adviser’s client is not ready to confirm exactly when they wish to stop working, but clearly the landscape is changing and will continue to change as will views on retiring overseas. “The growing shift in retirement attitudes is part of the evolving way that people plan for retirement and how they use investments vehicles other than pension products in that process.” HSBC Life (UK’s) report analyses the range of investable capital assets including equities, collective investments such as unit trusts and OEICs as well as ISAs, onshore and offshore bonds, defined contribution, and defined benefit pensions, VCTs, EIS, SEIS, structured investments and crypto investments. It highlights how capital investments can be structured to achieve intergenerational and estate planning, as well as the role of initial and ongoing advice in ensuring an optimal outcome from the investment of capital and the potential future tax treatment of capital investments. • Research was conducted among a geographically representative sample of 200 advisers across the UK representing 200 companies who were interviewed on the phone. The sample was weighted to be representative for assets under management and number of RIs. Consumer research was conducted online with a sample of 1,000 clients with a minimum of £25,000 investable assets who currently have a financial adviser or saw one within the last three years. The sample was weighted to be geographically representative.

4 in 10 clients expect to work past retirement age

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