New research from Prudential has warned the number of people working past retirement age could rise to 2.5 million in the next five to 10 years.
The data states that between workers aged 55-64, 31% of those in full-time employment and 38% of those working part-time don’t think they will retire when they are eligible for the state pension at 60 for women or 65 for men. This figure, equating to around 1.4m people, could double in the near future due to people waiting to save for their retirement until they are older.
The research reveals that in this older age group the average age for older workers to seriously start saving for their pension was 33, while a significant 14% only started at age 41 or older. One in four workers also claimed that they had never saved hard for their retirement or felt the need to.
Andy Curran, business development director at Prudential UK, said, “Our research suggests that many people approaching the end of their working lives left it too late before they started saving seriously for their retirement, with many feeling they just can’t afford to save. People who are aged 55-64 who are working full time only save an average 10% of their salaries with 25% not saving anything at all.”
John Lawson, marketing technical manager, at Standard Life, agrees with the findings, “This is a trend that we will see, people retiring later because they can’t afford it. But some people are also not happy in retirement finding themselves with nothing to do, and so there are two reasons for people going back to the workplace. The way pensions are developing could see people partially drawing their pension, while continuing in part-time work until they reach an income that will sustain them into retirement.”
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Nyree Stewart on 020 7968 4558 or email [email protected].IFAonline
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