Older people to work longer
New figures from a report by the Pension Policy Institute (PPI), “Retirement Income and Assets: the implications for retirement income of Government policies to extend working lives” show that half the workers aged between 50 and the State Pension Age (SPA) will have to work at least six years past their SPA if they want to maintain a reasonable standard of living.
The report shows that 45% will have to work 11 years or more to maintain a target replacement rate of living (defined by PPI as 50-80% of gross working life income depending on income level) while a further 5% will have to work for at least six years.
Commenting on the PPI’s report, Age UK charity director general Michelle Mitchell said: “These figures show that the traditional pattern of retiring and living comfortably on a pension earned over many years of working has broken down.
“Lower annuity returns and other factors mean that more and more people will have to work past their state pension age – and often for many years – if they are to have enough money to live comfortably.
“The government must work to encourage employers to hire and retain older workers, and to provide training for those who need it if we are to avoid creating future generations of people in later life struggling to make ends meet.”