New L&G survey finds one in seven retirees regret accessing too much cash from their pension

The research revealed that many retirees could run out of pension savings by their late 70s, leaving them with an average of 9 years of unfunded retirement - a result of the so-called 'lottery effect'.

With 35% of over 50s looking to retire now or within the next year, these findings reveal interesting insights.

Key findings include:

• One in seven (14%) who have accessed cash from their pension revealed they have regrets about doing so or spent more than they planned.
• Among those with spending regrets, more than one in 10 (11%) admitted they didn’t fully understand the impact of their decisions.
• One in seven (15%) revealed they felt like the cash lump sum from their pension was an unexpected financial bonus, rather than part of their long-term savings plan.

Research partner Dr Emma Hepburn, Clinical Psychologist comments, “Our biases can influence what we do with our money, potentially resulting in inadequate planning for the future or making us more likely to spend too much in the here and now. As this research shows, if we view our money as a reward or bonus, we may be more likely to spend it, which can lead to what has been dubbed “the lottery effect”.

“Perceptions of risk also often come into decision making, and we tend to favour decisions that feel more certain. As a result, we can feel that having or using money in the here and now is less risky than waiting to access it, even though this may actually create more risk for our future selves.”

For further information, please visit: https://www.legalandgeneral.com/retirement/campaigns/unlocking-your-pensions-potential/