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Over one third of pensioners aged 55-75 years plan to use newly released pension funds to fund travels abroad, recent research by the Association of British Travel Agents (ABTA) has claimed.
According to their data, 35% of this age group plan to book to take advantage of changes to pensions regulations made on April 06 by travelling abroad with long-haul flights and multi-generational cruises expected to see the biggest uptake in passengers aged over 55 years.
Holiday of a lifetime
ABTA found that one in five (20%) over 55s would consider taking money out of their pension pots to fund a holiday abroad while a further 15% remained undecided on how they’d splash the cash.
This put taking a holiday at the top of the priority list for pensioners with an additional 9% of respondents planning to use their new financial freedom to take family members and children on holiday and 5% planning to just take adult family members away.
Other plans for retirement cash included: making home improvements (31%), paying off debts (24%) and helping family members (18%).
Of those planning to spend their added cash on a holiday, 59% stated they would look to book the “holiday of a lifetime” and 56% commented that they would spend more than usual on a holiday.
Almost one quarter (24%) of individuals said they would use their pension pot to take a cruise; a figure which rose to 32% when speaking to couples.
Freedom to travel
Overall, 37% of pensioners planned to spend £2,000-£5,000 on a holiday abroad while 15% said they would spend £5,000-£10,000 and 5% would spend over £10,000.
Almost half of those questioned (48%) said they would take a break for between seven and 14 days while a further 38% would go away for 14-28 days and 14% would treat themselves to a holiday lasting over one month.
When it came to destinations, pensioners preferred the look of Europe with 41% saying they would visit the continent.
This was followed by North America (22%), Australasia (17%), Asia (10%), Africa (7%) and South America (6%).
Mark Tanzer, Chief Executive at ABTA, explained that many pensioners celebrate their retirement with a holiday so it is no surprise to see travel topping the list of money spending priorities.
If you’re thinking of travelling abroad this year, it’s important to ensure you have long haul travel insurance in advance
Date Created: 08/04/2015