It’s time for the nation to ditch cliched phrases such as OAP to describe retirement, with 57% of the British public rejecting this term according to new research from M&G, the leading savings and investments business because it is deterring people from engaging with retirement planning.
M&G’s Reframing Retirement campaign is challenging outdated perceptions of retirement to encourage people to financially plan for their future. Of those who have not started to plan financially for their retirement, 62% say they do not plan to start until they are at least 40 years old, risking saving ‘too little, too late’.
The latest study for M&G’s campaign found that around two in five people also dislike the terms “senior citizen” (43%) and “pensioner” (40%), while 37% find “golden years” unappealing, underscoring an urgent need to address barriers that are preventing people planning for retirement at an early age.
In contrast, the public much prefer positive, forward-looking language that feels relevant and empowering, with phrases like “freedom” (64%), “new adventure” (55%), and “the next chapter” (53%) seen as more motivating alternatives.
The research comes as economic confidence takes a hit with over half (57%) of those surveyed expecting the UK economy to worsen over the next 12 months and less than a third (29%) inspired by what they see and hear about retirement.
Anusha Mittal, Managing Director of Individual Life & Pensions at M&G, said: “It’s time to drop outdated language like OAP and senior citizen as it paints retirement in a negative light when it has dramatically changed as people live longer. If retirement is uninspiring then people are less likely to financially plan which reinforces the problem that many do not engage earlier enough to assess what they need from their pension, meaning we risk a generation of savers who are investing ‘too little, too late’.”
M&G’s findings on how language influences negative perceptions of retirement has prompted an assessment of what actions could encourage people to engage earlier with their pension. Working with the Social Market Foundation, Britain’s leading non-partisan think-tank, M&G have tested policy measures and believe a regular ‘Pension Check-Up’ can unlock people to take timely action on retirement planning.
The popular solutions British people most value is a clear summary in one place of what all their pensions and savings are likely to be worth when they retire (45%); a review of pension contribution rates and what a potential increase could mean for the future of their pot (31%) and an annual financial check-up for expert advice on savings and pensions (31%).***
The desire for a ‘Pension Check-Up’ is consistent across all age groups and demand is robust among younger demographics as well – 42% of 18 to 24 year olds said a one stop shop view of their retirement pot would help them take action compared to 49% of 55 to 64 year olds.
Anusha Mittal, Managing Director of Individual Life and Pensions at M&G, said: “There is appetite across the generations for financial planning support to be provided a lot earlier. Throughout our lives, we regularly visit the GP for health check-ups, yet we don’t view retirement in the same way, even though we would like to know what could put us in better financial shape.
“A ‘Pension Check-Up’ at key life moments, whether it’s moving jobs, buying a house, getting a promotion or starting a family, has significant promise to spur people on to become more informed and confident about their pension choices from an earlier age.”
Director of the Social Market Foundation, Theo Bertram said: “This research shows that there is appetite for a ‘Pension Check-Up’, including from those in younger generations. They want it to be independent and optional but if a routine check-up was designed and delivered in the right way then it could be the gateway to unlock a series of actions, whether it’s evaluating all of your pension pots in one place or increasing contribution rates. Services do exist already, but they are predominantly aimed at the over 50s when M&G’s research shows younger people would value this service too.
“The exam question for policymakers is identifying the right life stages for people to receive regular check-ups and designing a simple mechanism that can deliver it to as many people as possible.”
For more information on M&G’s Reframing Retirement campaign, visit: Reframing retirement – M&G plc
