Money trumps companionship when it comes to happiness in retirement, according to Aviva's latest Real Retirement Report. Having enough money to live comfortably emerges as the single most important factor for over a quarter of over-55s (27 per cent) - more so than sharing retirement with a partner (17 per cent), a happy family life (12 per cent) or devoting more time to hobbies and interests (3 per cent).

The autumn 2013 edition of the report examines the financial pressures affecting the UK's three ages of retirement - 55-64s (pre-retirees), 65-74s (the retiring) and over-75s (the long-term retired) - and explores the perspective they have gained on money matters. The findings show the over-55s value financial stability second only to good health (38 per cent) in retirement.

Living comfortably
The importance of being able to afford to live comfortably in retirement transcends age, gender and income differences. It is the second most pressing priority after good health for both sexes and all three age groups over the age of 55 - regardless of their actual income.
Among over-55s with annual incomes of up to £15,000, almost three times as many place greater value on having enough money to live comfortably than sharing retirement with a partner (34.1 per cent vs. 12.4 per cent). While the gap closes further up the income scale, even those receiving more than £30,000 annually put financial stability on a slightly higher pedestal than companionship (20.4 per cent vs. 19.9 per cent).
A shared retirement becomes more important with age and is the main priority for 23 per cent of over-75s compared with 13 per cent of 55-64s. More of the younger demographic prioritise finances than any other age group (32 per cent). This suggests that the recession and savings squeeze has increased the importance of money for those currently approaching retirement.

Changing career
Changing priorities during their working lives adds to the impression that the over-55s are becoming more financially motivated. Just 15 per cent say they chose their original or main career because of the salary, with men far more likely than women to have done so (19 per cent vs. 10 per cent).

In comparison, 27 per cent of over-55s were inspired down a particular career path by a genuine passion for it (including 30 per cent of men and 23 per cent of women.)

However, when it comes to changing career - a move made by 57 per cent of over-55s - salary considerations surpass personal interests or passions as a primary motive (17 per cent vs. 14 per cent). Men are again more likely than women to have moved in pursuit of more money (20 per cent vs. 14 per cent).

Construction and property is the career path where salary features as the biggest motivation (29 per cent). It is also the sector where a need for money is most likely to have prompted those who work in it to seek a change of career (29 per cent).

A simple message
With hindsight, over-55s identify paying off a mortgage or buying their home outright as the best financial decision they have made: 60 per cent have done and 96 per cent of those are glad they did.

Taking a break from work to raise their family is the second best decision made, with 95 per cent of those who have done (36 per cent of over-55s) pleased with their choice in retrospect. Similarly, 94 per cent of those who took out a workplace pension are glad they did.
When it comes to less prudent decision making, investing in the stock market qualifies as the most widely regretted choice. Nearly one in five over-55s have done (19 per cent) ? typically between the ages of 35 and 39 ? and nearly a third of those regret it (29 per cent).
One in twelve over-55s have emigrated at some point in their lives (8 per cent) but over a quarter (27 per cent) regret doing so, while among the 24 per cent of over-55s who started their own business, nearly one in five (18 per cent) now see this as a mistake.

On reflection, over-55s have a simple message about financial planning for retirement: save more on a monthly basis. Exactly half (50 per cent) would give their younger self this advice, with 40 per cent emphasising the importance of making better use of savings products such as ISAs.

Another common theme is the importance of contributing earlier to a pension: 39 per cent would recommend starting a personal pension earlier than they did (only 13 per cent opened one before they were 30), while 38 per cent say the same about workplace pensions (only 35 per cent started one by the same age).

Freedom from stress
More than half of over-55s see freedom from stress as the most important benefit of financial stability in later life (51 per cent). More than one in five treasure the luxury of enjoying holidays or hobbies (21 per cent), while twice as many over-55s value the financial clout to support themselves (18 per cent) rather than the ability to support others (9 per cent).

Among those whose lives have been impacted by financial worries (42 per cent), almost half have had to sacrifice their original retirement plans such as travelling or holidays (48 per cent). Almost one in five have had to continue working part-time as a direct result (16 per cent) and a similar number have had to continue working full-time (15 per cent).

This helps to explain why - for 15 per cent of over-55s - financial pressures in retirement have made them more stressed than they were during their working lives.

No magic recipe
Some people may be tired of hearing about the importance of saving for retirement, but listening to those who know what it means to be retired in 2013 leaves little doubt that financial stability can in fact buy happiness, and certainly help towards a stress-free lifestyle.

The report's findings suggest there is no magic recipe or secret formula that works better than regular saving and prudent decision making, whether that means taking steps towards paying off a mortgage or seizing opportunities to pay into pension schemes. The fact that over-55s are grateful for time spent raising their families' shows that financial planning needn't take over your life - but a bit of careful thought can be priceless in the long term.

Clearly the pressure of living costs and economic difficulties mean some over-55s find themselves in a less than comfortable position and harbour regrets about the past as retirement looms. It is important to remember there is a range of financial choices open beyond the age of 55 that can work to steer their finances back on track and help deliver the stress-free retirement they aspire to.

(SOURCE)

The Real Retirement Report was designed and produced by Wriglesworth Research. As part of this more than 17,686 UK consumers aged over 55 were interviewed between February 2010 and October 2013. This data was used to form the basis of the Aviva Real Retirement Report.

Wherever possible, the same data parameters have been used for analysis but some additions or changes have been made as other tracking topics become apparent.