Never has the need for financial advice been greater than it is for people approaching and transitioning into retirement.
Lead Tech Joint CEO Nigel Borwell explains, “The UK’s ageing population means that retirement planning is more important than ever. In 2019, 18.5% of the UK population was 65 years old and over.”
We know that it can be difficult for advisers to connect with their customers and understand the unique challenges they face.
With this in mind, we created our Retirement Index to help you better understand your customers’ retirement lifestyle needs.
Using our insights to build understanding
We took a deep look into the retirement customers in the UK by analysing our 2020 customer data and combining it with official research. Our index revolves around nine key elements that people consider during later life planning:
- Average pension fund size
- Expected pension shortfall (from Equity Release Council)
- Average cost of living per household (from ABC Finance Limited)
- Life expectancy (from ONS)
- Average house price (from Gov.uk)
- Annual house price change (from Gov.uk)
- Air pollution levels (from ClientEarth)
- GP staffing level (from Nuffield Trust)
- Crime rates (from ONS, Gov.scot, and Belfast Telegraph)
Once we normalised the data, we developed a clearer picture by scoring each region out of 100. This helped us evaluate and rank each region our findings down into scores for each region to highlight the best and worst areas to retire in the UK.
Here are a few of our key findings.
The best places to retire in the UK
Northern Ireland is a prime example of pension fund size not being the ‘be all and end all’ of retirement planning. The area had the lowest Average Pension Fund Size (£127k) but was found to be the best region to retire in the UK.
This was thanks to low Average Cost of Living per Household contributing to the lowest Expected Pension Shortfall in our research. House prices growing healthily also make equity release a viable later-life finance option for the area.
Northern areas of the UK scored well for Average Cost of Living per Household, registering some of the lowest costs in the country. However, low Average Pension Fund Sizes, Average House Prices, and Life Expectancy scores held them back and moved the North East to the bottom of our index.
The Retirement Index also found:
- Northern Ireland, South West and the East Midlands ranked as the top three places to retire in the UK.
- The Midlands also ranked highly for lower expected pension shortfall.
- Scotland scored the highest for GP staffing per 100,000 people and took second place for lowest air pollution levels.
- London ranked the lowest for crime rates, air pollution and cost of living.
Every customer should get the advice they need. This Retirement Index is just one of the ways we gather and interpret data to build detailed profiles of our customers and connect them with advisers who can help.