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News

05 April 2007

Freetirement nation is the envy of Generation X

The UK's over 50s are living a dream life that is the envy of the younger generation but may never be attained by them, according to a major new report commissioned by FTSE 100 life and pensions company Friends Provident.

The Freetirement Generation report, undertaken by social trend researchers the Social Issues Research Centre (SIRC) has revealed a generation enjoying a life of Freetirement, unburdened by debts and free to choose how and when they work and explore new activities.

The report found that retirees in the baby boomer generation, people aged between 52 and 60, have achieved a form of perfect work/life balance that Generation X - people in their 20s, 30s and 40s - strive for but may never afford.

Freedom is the single distinguishing characteristic of those who have retired. When asked about a range of statements they most agreed with, 60% of respondents said that retirement has given them the freedom to do what they want with their life and more than half (52%) said that retirement had given them the opportunity to pursue a passion or hobby.

Nearly a quarter (24%) of freetirees said they had the freedom to choose the type  of work they wanted to do, while 22% said they work for social contact and could now enjoy work without the stress and responsibility of the rat race.

Dr Peter Marsh, author of the report at Social Issues Research Centre, said:

"The Freetirement Generation is in a unique position, having lived through a period of relative economic prosperity and booming house prices which mean it now has money to spare.

"Baby boomers are an important economic force. According to some estimates the over-50 population now command approximately 80% of the UK's wealth."

However, for all their freedom and financial stability, the older generation is still marginalised by its younger counterparts. More than half (52%) of those aged over 50 thought their generation was becoming an increasingly important political force in the UK however only two-fifths (40%) of younger people thought that was the case.

The differences were more significant when respondents were asked if older people contributed positively to the UK economy - nearly half (49%) of older people thought they did, compared to less than a third (29%) of younger people.

The report found that baby boomers believed they were ageing less rapidly than in the past - on average they feel physically five years younger than their actual age.

Findings also revealed that the fact that people are remaining physically young for longer had implications for the kinds of lifestyles and values that are being sustained in retirement.

Jeremy Ward, head of pensions marketing at Friends Provident, said:

"It is ironic that some of today's retirees are living the kind of life that those in their 30s and 40s can only dream of - a life of financial freedom and freedom to pursue hobbies and interests with no added burden. On the other hand, our research shows that the Generation X group is experiencing retirement anxiety.

"If today's Generation X'ers have any hope of emulating their parents or grandparents then they need to start planning for their futures now."

Friends Provident has launched a specially designed website for consumers as part of its ongoing commitment to the Freetirement Generation. Visitors to the interactive site should log on to www.friendsprovident.com/freetirement.

- Ends -

For a copy of the executive summary, photographs and case studies please contact:

Sandra Grandison (+44 (0)845 641 7834))
Friends Provident

Christine O'Grady (+44 (0)845 641 7837))
Friends Provident

Issued on behalf of Friends Provident Pensions Limited.

Ref: H081

Notes to Editors

Generation X
Generation X refers to those born between 1965 and 1981 and currently aged between 25 and 41.

Baby Boomers
Baby Boomers refers to those born between 1946 and 1954  and currently aged
52 to 60.

The Freetirement Generation Report

The Freetirement Generation report was commissioned by Friends Provident and is based on independent research undertaken by the Social Issues Research Centre in January and February 2007.

The research for The Freetirement Generation report was undertaken using four focus groups, three of the groups had between eight and 10 participants aged 51 to 75 and the fourth group included participants aged from 25 to 45.

A YouGov survey was also conducted in February 2007 and surveyed 3,400 adults over the age of 35.

The Social Issues Research Centre

The Social Issues Research Centre (SIRC) is an independent, not-for-profit organisation based in Oxford, UK. It conducts research on a wide range of social topics and combines robust qualitative and quantitative methods with innovative analysis and thinking. It also conducts continuous monitoring of social and cultural trends.

YouGov

  • YouGov is registered with the Information Commissioner
  • YouGov is a member of the Market Research Society
  • YouGov is a member of the British Polling Council.

About Friends Provident

Friends Provident Life and Pensions Limited is a leading UK life and pensions provider with more than 2.5 million customers. It is part of Friends Provident plc, which is a FTSE 100 company comprising three core business areas: UK life and pensions, international life and pensions and asset management.

Now in its 175th anniversary year, the business was founded on Quaker principles and aimed to alleviate the hardship of families facing misfortune. These principles still drive the Group today. Friends Provident has embraced corporate governance and achieving high standards of corporate behaviour and accountability to both stakeholders and customers is at the heart of its business.

About Friends Provident Pensions Business

The Friends Provident pension business offers a comprehensive range of defined contribution products for individual customers and corporate clients.

Since the launch of the New Generation Pensions Systems site in 1998 Friends Provident has led the market in the development of online pension administration services. Our award-winning e-commerce systems provide the very best in service for customer and adviser.

Our investment solution includes a range of risk graded multimanager products and a choice of high quality funds from external asset management groups.

For more information on Friends Provident including, images, awards, fast facts, presentations, and media contacts please visit the media section at www.friendsprovident.com/media


Important

  • This news service is for information purposes only and does not provide any form of advice, recommendation or financial promotion. Any opinions expressed by third parties are those of the third party concerned and not of Friends Provident. Friends Provident does not accept liability for any errors or omissions or for loss incurred because of reliance on information or opinions given.
  • The content of the news items set out above are accurate only as of the date of issue and Friends Provident does not undertake any obligation to update them.