This year is a turning point for nearly one million people in the UK as they celebrate their 55th birthday and reach the age they can access their pension. The introduction of the pension freedoms in 2015 means that individuals with defined contribution pensions can now access their pension savings with complete flexibly from the age of 55 and start to take a retirement income if they choose.
To mark this occasion, Aegon has carried out analysis of the latest population projections to reveal the areas around the UK with the highest proportion of baby boomers.
In Scotland, Argyll & Bute tops the list where 29 per cent of the population were born between 1946 and 1964. At the opposite end of the scale, Edinburgh is the local authority with the lowest proportion of Baby Boomers in Scotland. Just 18.5 per cent of its population are part of this generation.
Steven Cameron, pension director at Aegon, said: “More than one in five of the UK’s population are classed as Baby Boomers and this year the youngest of this generation turn 55. This marks a significant milestone as it means all Baby Boomers will be able to access their pension and those with defined contribution pensions will increasingly be using newfound flexibility to transition gradually into retirement.
“With baby boomers controlling much of the nation’s wealth, this trend towards retirement will have significant implications for society and the economy as people start spending savings built up over decades.
“The freedoms enable a more flexible transition into retirement, but they have also introduced greater risk with an increasing number of people responsible for investing appropriately and ensuring they do not overspend and run out of money part way through retirement. For some Baby Boomers, as well as planning retirement needs, they have a further opportunity to work out how best to pass wealth down through the generations, although this can be challenging.
“The financial decisions baby boomers face are often complex and can have significant consequences on their future lives and those of their families.
“As more people move towards retirement, there are major benefits in them seeking the help of financial advisers on how to make the most of these new opportunities.”