Older workers may opt for retirement delay
UK - Almost a fifth of workers aged between 45-54 expect to delay retirement by at least five years because of the current economic climate, the Life Trust has suggested.
Research published by the firm, and conducted by YouGov, revealed 23% of the 2,160 workers responding expect to retire later than planned, while 12% believing they would have to work at least an additional five years, if not more.
The survey, which asked respondents about their plans to stop working, showed 8% expect to work two to four years longer than they had originally planned, while 3% predict having to delay retirement for around a year.
In particular, findings suggested older workers could be most affected by the economic conditions as 41% of those over the age of 55 claimed they would be delaying retirement, while 15% suggested they could work for five years more than they had planned.
Respondents aged between 45-54 years of age also appear to be concerned about their retirement incomes, as research suggested almost a third feel they will be forced to delay retirement while 19% intend to work for an additional five years of more.
The Life Trust survey follows earlier research from the firm in September 2008, when its “Cost of Retirement” report for 2008 estimated it would require a pension’s pot of least £373,300 to finance early retirement.
The firm also warned increasing longevity is also a factor in the cost of retirement, with the average life expectancy predictions of 85 for men and 88 for women, although the firm warned mortality table figures suggest a current 35-year old has an almost one in three chance of reaching 95.
“Retiring early is a privilege that was, until very recently, an ambition for many people,” said Andy Briscoe, chief executive of Life Trust.
“However with worsening economic conditions coupled with increasing life spans this is now something fewer people are able to afford,” he added.
Elsewhere, research from Club Vita, a longevity club established by Hymans Robertson, revealed almost 60% of UK workers are not confident they will have enough money in retirement, and one-third of respondents expect poor retirement provision will reduce their life expectancy, while 56% believe stress will impact on their longevity.
The survey of 1,815 adults suggested only 1 in 20 are confident they have saved enough for the future, although just 13% of the respondents claimed a company pension scheme would have “the single, most positive effect on their comfort in retirement”.
Nick Flint, chief executive of Club Vita, said: “Many people believe poor retirement provision could shorten their lives and in a sense there are right, since personal wealth has an important influence on how long we live. However, it’s worth noting that having a high salary is not the same as having made ample provision for retirement. And having a small pension from a single scheme isn’t always the same as having made poor provision for retirement.”
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