Aegon launch new online tool to help people create their retirement vision

The tool was created in response to the findings of Aegon’s Financial Wellbeing Index which measures both the health of people’s financial position and the critical role that mindset plays in influencing financial wellbeing.

The firm's research found that the majority of people require greater clarity in terms of factors like knowing where they want to live in 10 years, who they want to spend time with and what kind of lifestyle they want to enjoy.

The research also identified that the more concrete a picture of your future self you have, the more likely you are to be a top contributor to long-term savings like a private pension or a stocks and shares ISA. The ability to picture the future was also a stronger determining factor as to whether people had built a financial plan than their income level and it was these insights that prompted the creation of the tool

How many have a vision of their future self?

While having a vision of your future self has a strong positive correlation with good savings habits and having a financial plan, relatively few people are able to visualise themselves in the years ahead. Aegon found that 38% of people have only a vague idea of where they want to be financially in 10 years’ time vs 29% with a specific idea. The research also highlighted that just 28% have a vague sense of what gives them joy or purpose which are key elements of happiness.

Aegon also found that 87% of the population do not have a financial plan to achieve long-term goals.

About the tool

The tool asks nine questions covering different elements of how someone might live in the future, who they’ll spend time with and what activities will give them joy and purpose. Those completing the survey select an answer for each question from a range of photos or can upload their own image to make it a truly personalised vision.

The image selections then produce a ‘gallery wall’ giving them an inspirational vision of what their retirement could look like which they can download, share on social media or print and display as a motivational reminder to keep them on track.

The tool also provides helpful nudges and further information for users to gain a greater understanding of their financial well-being. 

Steven Cameron, Pensions Director at Aegon comments: “The more clearly we can picture what we want for our future selves, the more likely we are to be able to plan to achieve this. Our research shows that people who can imagine how they want their future to look are better at working out a long-term financial plan to propel them to achieve it.

“A simple shift in mindset from thinking about today to thinking beyond tomorrow could make all the difference to the actions people take to make plans and provisions for retirement, such as taking more interest in their workplace pension and whether they should contribute more.

“This new tool combines two of the essentials of financial wellbeing – turning aspirations we have for our future into pictures we can relate to and then suggesting steps for working out a long-term financial plan.”