You are here: Home - Retirement - Retirement planning - News -

Ten million Brits to ‘work until they drop’

0
Written by:
05/04/2018
More than three million people expect to work until they die, with another 10 million saying they will work until they are physically unable to do so.

The research from Scottish Widows shows that while higher workplace pension contributions will help narrow the gap on retirement savings, many need to be doing a lot more to ensure a comfortable retirement. Two fifths (44%) of people are not saving the recommended 12% of their salary towards retirement each year.

As a result, many will have to work beyond retirement age. More than half (51%) of Brits now expect to continue working at least part-time past retirement age, and a fifth (18%) said that working beyond the age of 65 will be a necessity rather than a choice. Only a quarter (24%) expect to have completely retired by the time they’re 65.

Young people in particular are pessimistic about their retirement prospects – only one in 20 (5%) of 18-24 year olds expect to retire by the age of 65, compared with 11% of 25-34 year olds (11%).

Nearly one in five (18%) people said they’ll work longer than they want to because they worry about their level of saving. Just under a third (32%) of 25–54 year olds worry they haven’t been saving enough in their early years, and two-fifths (39%) of people fear running completely out of money in retirement.

The gender pay gap extends into retirement. Women tend to have smaller pensions because they are more likely to have spent time out of the workplace caring for children or relatives, and tend to be paid less. As a result, women are more concerned than men about the cost of later life. Just over two-fifths (43%) of women are concerned that they’ll run out of money during retirement, while only a third (34%) of men feel this way.

Robert Cochran, retirement expert at Scottish Widows, said: “While the idea of a ‘cliff edge’ retirement – when people around the age of 60 to 65 give up work once and for all – has been disappearing in recent years, our research clearly shows this is a necessity rather than a choice for too many workers.

“Auto-enrolment has been a great success in kick-starting the savings habit for millions, and the increase in minimum contributions from this month should, in the long-term, mean that more people have valuable pension funds to live off as they approach later life. With life expectancy expected to continue rising, it’s worthwhile remembering that saving for the future doesn’t need to stop at ‘retirement age’.  Only a third of people who expect to carry on working past retirement age think they will continue to pay into a pension – over time this number is likely to go up.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

Low-income pensioner? You could gain £3k top-up

Hundreds of thousands of retirees struggling with a low income are missing out on Pension Credit worth £3,300...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week