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Millions of over-55s plan to work beyond state pension age

Rebecca Goodman
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Rebecca Goodman

Over 2.5 million people, or 37%, who are aged 55 and over are preparing to work beyond their state pension age, new research shows.

Half of those in this age group do not think their pension will be enough to live on in retirement and 23% are not sure how long their pension will last for.

The main reason for people working beyond the age when they are entitled to a state pension is a worry of not having enough money in retirement.

A fifth of the 2,000 people asked by insurance company Canada Life said they had not prepared for retirement.

The cost of living crisis and soaring inflation are two of the reasons for growing numbers of savers rethinking the age they will stop working.

It comes as recent research shows that about half of savers risk missing retirement targets set by the Pensions Commission in 2005 and around one in five households are at risk of failing to even achieve a ‘minimum’ standard of living in retirement.

Financial worries in retirement

Just under half, 46%, of respondents said they are worried that if they work beyond their state pension age they won’t be able to enjoy their retirement.

Over two fifths (45%) are worried about how their health will deteriorate as they get older because they need to carry on working and 35% are worried their health will stop them from working.

While 16% said they are worried they will be treated differently at work because they are older and 16% said they are worried they won’t be able to spend time with their family.

“A growing number give retirement a second thought”

Andrew Tully, technical director for Canada Life, said: “As inflation soars at double digit rates and the cost-of-living crisis continues to bite, we are seeing a growing number give retirement a second thought.

“Looking ahead, the older workforce is going to be critical to the recovery of the UK economy as it will help to alleviate severe labour shortages, however, it is also a warning sign that people’s finances are under significant strain.

“For anyone worried about how the extreme market volatility and cost-of-living crisis could impact their retirement savings, seeking the help of an adviser is a sensible step. Not only will they be able to discuss the options, but will help people plan the retirement they have worked long and hard for.”