When we reach a certain age, working less and taking time to enjoy the good things in life, is a path many choose to follow.
Retirement is no longer about slowing down; it’s about embarking on new adventures, trying new things, learning new hobbies, starting up a business and perhaps … taking a holiday?!
Nowadays, more and more retirees are choosing to cash in their pensions. In fact, from next April anyone over the age of 55 will be able to withdraw their pension pot with 25% of this standing as a tax-free sum.
Those who no longer have to worry about supporting their children will often downsize to a smaller property such as those offered by McCarthy and Stone. Doing so will not only allow them to move into a likeminded community but will enable them to free up some much-needed cash. This can then be added to their pension pot – but what will they spend it on?
Time to relax
Combining money from the sale of property and a pension allows many retirees to plan the trips they’ve always dreamed of. In fact, one in seven spends at least some of their pension money on a holiday and according to a poll commissioned by Hargreaves Landsown, 21% of those who intend to withdraw their pension pot under the new rules will spend some of it on a holiday.
Only a marginally higher 22% will use the money to live off while 23% intend to keep the cash as savings.
The beauty of travel
Having the time to travel where you want, when you want is a great thing and retirement allows older holidaymakers to jet off without having to worry about a huge mortgage to pay, children to feed or holiday time from work.
Aside from keeping you young, globetrotting also allows holidaymakers to learn new cultures, indulge in new cuisines and embark on adventures that allow them to develop a number of new skills – improving their lifestyle in numerous ways as a result.