Young workers are naive about retirement age
UK- Younger employees in the UK are less realistic than their elders about the age at which they can retire according to a new survey by the UK’s Chartered Institute of Personnel and Development.
The survey suggests young people are most ambitious to retire early and that more than half of those under the age of 30 would like to retire before they are 50.
The average age at which people expect to retire is 60- men expect to stop working between 60 and 61 while women expect to leave at just under 60.
The survey also found that older workers are more satisfied, committed and motivated than younger ones. Employees over the age of 55 are twice as likely as average to be satisfied with the existing balance between their work and other aspects of their lives.
The survey’s findings are particularly alarming given the aging population, longer life expectancy, the closure of final salary schemes, lower than expected take up of stakeholder pensions and a reluctance to save for the future.
They also come at a time when the government is keen to shift more of the responsibility of pensions provision from the public to private sector.
Mike Emmott, the CIPD’s advisor on employee relations, says: “the government needs to make people aware of the need to act sooner rather than later if they are to enjoy an adequate level of pension.
“It also needs to work on altering expectations if it wants to persuade people to stay at work longer. It has some powerful levers at its disposal- retirement expectations are influenced strongly by access to state or occupational pensions.”
“A substantial number of people have worries about their pensions and most of these are, in practice, unlikely to be able to take early retirement.”