New retirees no longer have to rely on a fixed income pension – with reforms introduced today, they can access any amount of their pension pot at any time.
According to the Association of British Travel Agents (Abta), 20 per cent of Britons aged between 55 and 75 are considering taking cash out because of the changes, and “going on holiday” is the most popular reason for doing so.
Many would keep it relatively simple, planning to go away for a trip of one to two weeks in length, but six in ten said they intend to take a “holiday of a lifetime”, which would be longer and cost more.
“The changes to pension regulations mean that many over 55s may choose to spend some of their pension pot on a holiday,” said Mark Tanzer, chief executive of Abta. “We know that people often celebrate big occasions such as anniversaries, birthdays or retirement with a holiday so it’s perhaps no surprise to see travel topping the list of items pensioners may spend some of their money on.”
However, he urged new pensioners to seek guidance the government's Pension Wise service before making any large withdrawals.
Where do pensioners want to go?
Of all possible holiday destinations, the most popular among those questioned was Europe, followed by North America and Australasia. South America was the least popular.
The research was based on a survey of 201 people, and after taking a holiday the next most popular reasons for taking out money were home improvements and paying off existing debts. One in five said they would also use pension money to help out other family members.