WE HAVE a pensions revolution - but do we actually need a retirement rethink?
Pensions and retirement were created in the 19th century when those in their sixties were worn out by physical labour; it was expected that after a lifetime of struggle, they might enjoy a few years of "leisure", if they could afford it or lasted that long.
The world, and life expectancy, has moved on dramatically since then, but the basic "retire in your sixties" belief remains and we wait longingly for that "magic" day. Governments are at last starting to raise the retirement age; but the addition of even a couple of years takes decades.
Increasingly, there seems to be a choice - focus on life now or prepare and plan carefully for later. It's as though you have to make sacrifices in one area to make sure the other goes smoothly. Some even go beyond retirement and focus on what they will leave their children and grandchildren.
The Independent Financial Adviser (IFA) will try to make sure you enjoy the best of all worlds. Planning is essential and all individuals have preferred priorities, but it's obvious to all that potential 25-year- plus retirements must change traditional thinking about those twilight years.
For a start, why retire when fit and healthy, especially if it means financial uncertainty down the line. The number of self-employed has grown dramatically in the past six years because of the recession. New technology and the Internet mean running a business or job from home is now a real option.
Many who do retire can find themselves in the role of full-time grandparents, providing assistance to a new generation, financially, physically and emotionally.
Yet there is recent evidence that the older generation are following Dylan Thomas's advice - "do not go gentle into that good night".
A study by Barclays has shown that the over-65s each spend £3,372 a year on leisure and hospitality - compared to £2,664 laid out by the 35-54 age group.
Barclays believe the hospitality and leisure industry could be missing out on £16 billion annually by under-estimating the spending power of the older generation, which spent an estimated £37bn in 2014, about 20 per cent of the industry's income.
Despite the fact that consumer groups tend to target the 35-54 age group with their marketing budgets, pensioners spend more per head than any other age group on eating out, going to the cinema and theatre, staying at hotels in Britain, gambling and playing golf.
Those over-65s who travel abroad spend £5,419 a year on foreign holidays, compared with £3,187 in the 35-54 age-group. They even spend more visiting theme parks than parents with young families - £396 annually compared to £231.
The head of hospitality and leisure at Barclays admitted: "There is a definite feel-good factor in this demographic, who have benefited from price reductions and better value for money in many areas.
"They also feel younger than previous generations of pensioners with more desire to do different things, travel and enjoy themselves," adding that they are also the first generation to have children living in different parts of the country or even abroad; often they are the ones who pay for family days out or holidays when they all get together.
Surprisingly, Barclays found that companies in the leisure and hospitality sector used the bulk of their advertising budget trying to attract young families; only 5 per cent of the companies rated pensioners as the most important group.
Those over-65s with substantial equity in their homes with good pensions and cash reserves in shares and ISAS have tax reasons for assisting the next generations, as well as paternal ones. More and more estates are becoming liable for Inheritance Tax (IHT).
A total of 16,000 estates were liable for IHT in 2012; as the threshold has remained the same (£325,000 since 2009) and house prices have risen substantially in the past three years, many more estates are going to have to pay the 40 per cent tax above that threshold.
Claims that IHT is a tax on London and the south is reinforced by these figures.
London (3000 estates/19 per cent), the south east (3,700/23 per cent); the south west (2,000/13 per cent) and the east of England, below the midlands (1,700/11 per cent) added together total 10,400 estates (65 per cent of the total).
Wales had 500 estates liable in 2012, Scotland 1,000 and Northern Ireland 200.
The increase in house prices continues to make IHT a contentious issue, especially in those areas hardest hit by the tax. As ever, there have been Tory promises of an increase in the threshold, but the Coalition scuppered that last time. We will have to wait and see.
The older generation, especially pensioners, has adapted well through the recession, especially as many have seen income from savings and dividends from investments slashed.
Some have delayed retirement, which may become an increasing trend; others have released equity or reduced their financial commitments with the help of an IFA. Planning is the key, as well as realising there's absolutely no need to be old before your time.
* For a free no obligation initial chat about your individual finances, call Darren McKeever on 028 6863 2692, email info@wwfp.net or go to www.wwfp.net.